Vanguard’s Paradox: Bitcoin Skeptic Now Top MSTR Shareholder 🤔

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The Vanguard Group, a colossal asset management firm with a portfolio exceeding $10 trillion, has quietly ascended to the position of largest shareholder in Strategy (formerly known as MicroStrategy).

This development, rather amusing in its irony, marks a significant shift for the esteemed asset manager, who has, until now, been a vocal critic of Bitcoin (BTC) and other digital currencies. One might almost suspect a change of heart, were it not for the steadfastness of their skepticism.

Why Vanguard Invested in MSTR Despite Bitcoin Criticism

According to the ever-reliable Bloomberg, Vanguard now holds over 20 million shares of Strategy, representing nearly 8% of the company’s outstanding Class A common stock (MSTR). This considerable stake has likely surpassed that of Capital Group Cos., thus securing Vanguard’s position as the top shareholder. However, it is crucial to note that this investment does not imply any newfound affection for crypto products.

“As investors have continued to flock to its index-tracking funds in recent years — swelling assets under management to more than $10 trillion — it’s become the top shareholder of roughly 400 companies in the S&P 500. Strategy isn’t currently part of the benchmark, though it recently was included in the widely followed Nasdaq 100 gauge,” Bloomberg wrote.

Yet, the irony of this situation has not escaped the keen eyes of the financial world. Vanguard has long maintained a critical stance on Bitcoin, even going so far as to label the largest cryptocurrency an ‘immature asset class.’ In 2024, the firm declined to offer Bitcoin exchange-traded funds (ETFs) on its platform, citing concerns over volatility. One can almost hear the chuckles from the crypto community at this turn of events.

In stark contrast, under the leadership of the indomitable Michael Saylor, Strategy has risen to prominence as the world’s largest corporate holder of Bitcoin. Data from SaylorTracker reveals that the company boasts a staggering 601,550 Bitcoins, worth a princely sum of $70.81 billion (2.86% of the total Bitcoin supply).

Moreover, as Bitcoin’s value has soared, so too has the stock of Strategy, making it a key beneficiary of the cryptocurrency’s rising market demand. Since the inception of the Bitcoin treasury strategy some five years ago, MSTR has appreciated by over 3,500%. One might say, it is a tale of fortune favoring the bold.

“Vanguard: Bitcoin is immature and has no value. Also, Vanguard: Buys 20 million shares of MSTR, becomes top backer of Bitcoin’s loudest bull. Indexing into $9 billion of what you openly mock isn’t strategy. It’s institutional dementia,” VanEck’s Head of digital assets research, Matthew Sigel, stated with a touch of sarcasm.

Bloomberg’s senior ETF analyst, Eric Balchunas, suggested that this turn of events was ‘proof that God has a sense of humor.’ Indeed, one cannot help but agree.

“Vanguard chose this life. When you have an index fund, you have to own all the stocks, for better or worse, and that includes stocks that you may not like or approve of personally,” he said, with a wry smile.

Meanwhile, this development is part of a broader trend of institutional involvement in crypto-related assets. Previously, BeInCrypto reported that in Q1 2025, 14 US states revealed a $632 million stake in Strategy’s MSTR stock. It’s not just MSTR; there’s also a rising demand for other crypto stocks, as evidenced by the Czech National Bank’s acquisition of Coinbase shares worth $18 million.

However, some analysts have warned of a potential institutional bubble, raising questions about the sustainability of Bitcoin investment vehicles.

“Don’t forget that the premiums will one day collapse to discounts, as the corporate treasury structures are an imperfect vessel to hold $BTC (just like GBTC 1.0) – a bubble is amazing, but not sustainable,” Placeholder partner, Chris Burniske, posted, with a note of caution.

Recently, BeInCrypto highlighted concerns about Strategy’s Bitcoin-only focus. Analysts warn that the company’s dependence on Bitcoin and its lack of diversification make it vulnerable to market fluctuations, raising liquidation risks. Furthermore, the company’s substantial Bitcoin holdings, funded by convertible debt, could lead to significant pressure on its balance sheet if Bitcoin’s price drops below its average purchase price. One must hope that prudence will prevail in the face of such risks.

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2025-07-15 08:32