Norway’s massive sovereign wealth fund, Norges Bank Investment Management (NBIM), has quietly boosted its Bitcoin exposure – but not in the way you might think. Instead of buying Bitcoin directly, they’ve made a smart move by investing heavily in MicroStrategy.
A Smart Indirect Investment
NBIM’s strategy is all about indirect exposure. They’ve essentially bet on a company that’s already heavily invested in Bitcoin, rather than directly navigating the volatile crypto market themselves. By the end of 2024, they owned around $500 million worth of MicroStrategy stock (over 1.1 million shares). This lets them potentially profit from Bitcoin’s rise without the risks of directly owning it.
Avoiding the Crypto Chaos
This approach neatly sidesteps many of the headaches associated with holding Bitcoin: regulatory uncertainty, security concerns (custody), and the wild price swings. This indirect strategy has paid off handsomely. Their indirect Bitcoin holdings nearly tripled in 2024, jumping from roughly 1,506 BTC to 3,821 BTC.
Why MicroStrategy?
So, why MicroStrategy? The company is known for its massive Bitcoin holdings, making its stock price closely tied to Bitcoin’s performance. As Bitcoin goes up, so does MicroStrategy’s stock price – giving NBIM a way to participate in Bitcoin’s potential upside without the direct volatility. It’s a low-risk way to get a piece of the crypto action.
A Broader Trend
Norway isn’t alone in this strategy. Many institutional investors are warming up to crypto but are hesitant to own it directly. They’re using companies like MicroStrategy as a bridge, dipping their toes in the crypto waters without fully submerging themselves.
Beyond MicroStrategy
NBIM’s crypto-related investments extend beyond MicroStrategy. They also hold shares in other companies involved in the Bitcoin ecosystem, including Coinbase, Marathon Digital, Riot Platforms, Tesla, and Metaplanet. This diversified approach further mitigates risk while still gaining exposure to the growth potential of the crypto market.