Vanguard Group, an asset management giant of $ 10 billions, has become the largest strategy shareholder (formerly Microstrategy).
The position highlights a paradoxical change for the asset manager, who historically expressed skepticism towards Bitcoin (BTC) and other digital assets.
Why Vanguard invested in MSTR despite the criticism of bitcoin
According to Bloomberg, Vanguard has more than 20 million strategy actions, representing almost 8% of class A ordinary shares in the company’s circulation (MSTR). This participation, probably exceeding capital Group Cos., Vanguard position as the highest action. It should be noted that the investment does not point out the management of cryptographic products.
“While investors have continued to flock its index follow -up funds in recent years – inflating assets under management to more than 10 dollars – it has become the best shareholder of around 400 S&P 500 companies. The strategy is not currently part of the reference, although it has recently been included in the Nasdaq 100 Gauge widely followed,” Bloomberg.
However, the irony of the participation of asset managers in MSTR action has not gone unnoticed. Vanguard has long maintained a critical position on Bitcoin, even labeling the largest cryptocurrency and an “class of immature assets”. In 2024, the company refused to offer negotiated Bitcoin (ETF) funds on its platform, citing volatility problems.
On the other hand, under the leadership of Michael Saylor, the strategy has taken on importance as the greater Bitcoin holder in the world. Saylortracker data has revealed that the company has 601,550 bitcoins, worth $ 70.81 billion (2.86% of the total Bitcoin offer).
In addition, as the Bitcoin value has increased, the MSTR stock of the strategy also, which makes it a key beneficiary of the growing demand for the cryptocurrency market. Since he launched the Bitcoin Treasury strategy about five years ago, MSTR has appreciated more than 3,500%.
“Vanguard: Bitcoin is immature and has no value. In addition, Vanguard: buys 20 million MSTR shares, becomes the first driver of the Bitcoin bull in Bitcoin on 9 billion dollars of what you laugh openly is not a strategy. It is institutional dementia.”
Bloomberg’s senior analyst Eric Balchunas suggested that this turn of events was “proof that God has a sense of humor”.
“Vanguard has chosen this life.
Meanwhile, this evolution is part of a broader trend in institutional involvement in assets linked to crypto. Previously, Beincrypto reported that in the first quarter of 2025, 14 American states revealed a participation of $ 632 million in the MSTR actions of strategy.
It’s not just MSTR; There is also an increasing demand for other cryptography stocks. This is obvious to the acquisition by the Czech National Bank of Coinbase shares worth $ 18 million.
However, some analysts have warned of a potential institutional bubble, which raises questions about the sustainability of Bitcoin investment vehicles.
“Remember that the premiums will one day collapse at the discounts, because the corporate cash structures are an imperfect ship to contain $ BTC (just like GBTC 1.0) – a bubble is incredible, but not durable,” said the placement partner, Chris Burniske.
Recently, Beincrypto highlighted the concerns about the objective only of the strategy. Analysts warn that the dependence of the company with regard to Bitcoin and its lack of diversification make it vulnerable to market fluctuations, increasing the risks of liquidation.
In addition, the substantial Bitcoin of the company, funded by convertible debts, could result in significant pressure on its balance sheet if the price of Bitcoin drops below its average purchase price.
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