Vanguard Takes $9B Stake to Become Largest Shareholder in Bitcoin-Holding Strategy Inc
The post Vanguard Takes $9B Stake to Become Largest Shareholder in Bitcoin-Holding Strategy Inc appeared on BitcoinEthereumNews.com. Investment giant Vanguard has become the largest shareholder in Strategy Inc., the most prominent corporate holder of Bitcoin. Vanguard Group, the world’s second-largest asset manager, became the biggest institutional shareholder in Strategy Inc. (aka MicroStrategy), despite the firm’s repeated warnings against investing in cryptocurrencies. For context, the $10 trillion asset manager has acquired more than 20 million shares of Strategy, giving it nearly an 8% stake in the company’s Class A stock. Notably, the stake is worth approximately $9.26 billion. Meanwhile, the position was not the result of a direct bet on Bitcoin but an outcome of Vanguard’s passive index-tracking strategy. Bitcoin Exposure via Passive Investing Strategy, under the leadership of Michael Saylor, has transitioned from a software company into a corporate vault for Bitcoin. With more than 601,500 BTC on its balance sheet, the company has become the most prominent public Bitcoin holder. As Strategy gained market relevance, it entered into major equity indices. This inclusion forced passive funds, such as those managed by Vanguard, to purchase shares regardless of the company’s crypto focus. Consequently, Vanguard, known for promoting conservative asset allocations, now holds one of the largest indirect Bitcoin exposures in the institutional world. Clash Between Philosophy and Portfolio The development highlights a widening gap between Vanguard’s philosophy and the reality of its portfolio. For years, the firm has criticized Bitcoin for lacking intrinsic value and dismissed it as a speculative asset. Yet, its indexing model has pulled Bitcoin exposure into its funds without a change in official stance. Critics argue this reflects a deeper flaw in modern asset management. In a public post, Matthew Sigel, Head of Digital Assets Research at Vaneck, described Vanguard’s stake as “institutional dementia.” He cited the contradiction between the firm’s anti-crypto rhetoric and its passive exposure. Vanguard: Bitcoin is immature and has no…
The post Vanguard Takes $9B Stake to Become Largest Shareholder in Bitcoin-Holding Strategy Inc appeared on BitcoinEthereumNews.com.
Investment giant Vanguard has become the largest shareholder in Strategy Inc., the most prominent corporate holder of Bitcoin. Vanguard Group, the world’s second-largest asset manager, became the biggest institutional shareholder in Strategy Inc. (aka MicroStrategy), despite the firm’s repeated warnings against investing in cryptocurrencies. For context, the $10 trillion asset manager has acquired more than 20 million shares of Strategy, giving it nearly an 8% stake in the company’s Class A stock. Notably, the stake is worth approximately $9.26 billion. Meanwhile, the position was not the result of a direct bet on Bitcoin but an outcome of Vanguard’s passive index-tracking strategy. Bitcoin Exposure via Passive Investing Strategy, under the leadership of Michael Saylor, has transitioned from a software company into a corporate vault for Bitcoin. With more than 601,500 BTC on its balance sheet, the company has become the most prominent public Bitcoin holder. As Strategy gained market relevance, it entered into major equity indices. This inclusion forced passive funds, such as those managed by Vanguard, to purchase shares regardless of the company’s crypto focus. Consequently, Vanguard, known for promoting conservative asset allocations, now holds one of the largest indirect Bitcoin exposures in the institutional world. Clash Between Philosophy and Portfolio The development highlights a widening gap between Vanguard’s philosophy and the reality of its portfolio. For years, the firm has criticized Bitcoin for lacking intrinsic value and dismissed it as a speculative asset. Yet, its indexing model has pulled Bitcoin exposure into its funds without a change in official stance. Critics argue this reflects a deeper flaw in modern asset management. In a public post, Matthew Sigel, Head of Digital Assets Research at Vaneck, described Vanguard’s stake as “institutional dementia.” He cited the contradiction between the firm’s anti-crypto rhetoric and its passive exposure. Vanguard: Bitcoin is immature and has no…
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