Vanguard Group has become the largest institutional shareholder of MicroStrategy, increasing its stake to over 20 million shares, which provides the company with indirect exposure to Bitcoin.
Increase of Vanguard’s Stake in MicroStrategy
Vanguard Group now owns 8% of MicroStrategy's shares, amounting to approximately 20 million shares. This position arose through accumulation via passive index funds, including the Vanguard Total Stock Market Index Fund.
Indirect Exposure to Bitcoin
This stake provides Vanguard with indirect exposure to over 200,000 Bitcoins held on MicroStrategy's balance sheet. According to BitcoinTreasuries.net, MicroStrategy is the largest corporate Bitcoin holder, owning 601,550 BTC valued at over $33 billion.
Implications for Passive Investing Industry
Vanguard's situation highlights shifts in the asset management industry as passive investment strategies create embedded crypto exposure. Analysts note this necessitates financial advisors to inform clients about such indirect holdings.
As Bitcoin continues to rise in value, Vanguard's position in MicroStrategy underscores the challenges faced by firms refusing to invest in cryptocurrencies, pressuring them to reconsider their strategies.
