Vanguard Emerges as Largest Shareholder in Bitcoin-Focused MicroStrategy
Vanguard, the global investment giant long skeptical of Bitcoin, has become the top institutional shareholder of MicroStrategy (MSTR). The firm now holds over 20 million shares, representing 8% of MicroStrategy’s Class A stock. This gives Vanguard indirect exposure to MicroStrategy’s substantial Bitcoin holdings, which exceed 200,000 BTC.
The Passive Investing Paradox
Vanguard’s position results from index fund mechanics. The Vanguard Total Stock Market Index Fund automatically includes MicroStrategy as part of its broad US equity allocation. Despite this Bitcoin exposure, Vanguard maintains its cautious stance on cryptocurrencies and continues to avoid offering spot Bitcoin ETFs.
Diverging Paths in Asset Management
While Vanguard remains cautious, competitor BlackRock has embraced cryptocurrency exposure through its successful iShares Bitcoin Trust ETF (IBIT). Bloomberg Senior ETF analyst Eric Balchunas notes IBIT could reach $100 billion in assets soon, demonstrating strong market demand for Bitcoin investment vehicles.
Market Ironies Highlighted
Balchunas observed the situation’s irony: ‘Index funds must hold all qualifying stocks, regardless of personal views.’ This unexpected connection between a Bitcoin skeptic and a Bitcoin maximalist company underscores the complexities of modern investing.
