Asset management giant Vanguard Group has acquired nearly 8% of MicroStrategy’s Class A common stock, making it the company’s largest shareholder. This positions Vanguard ahead of previous leader Capital Group Cos. in ownership stake.
MicroStrategy’s stock has surged over 3,500% since its 2020 shift to a Bitcoin-centric treasury strategy. The company now holds more than 600,000 BTC, establishing itself as the world’s largest corporate Bitcoin holder.
Despite Vanguard’s vote of confidence, concerns persist about MicroStrategy’s exposure to cryptocurrency volatility. Critics warn that if Bitcoin falls below the firm’s average acquisition cost, liquidation risks could intensify. Former Ark Invest analyst Chris Burniske cautions that a wider institutional bubble may be forming around crypto-correlated equities.
Parallel institutional activity includes the Czech National Bank taking positions in Coinbase shares. Several US state-level investment funds also hold substantial MicroStrategy stock alongside these global moves.
The investment creates an apparent contradiction in Vanguard’s approach, given its historical reluctance regarding direct cryptocurrency exposure while simultaneously accumulating shares in a Bitcoin-dominated firm.