Norges Bank Investment Management (NBIM), Norway’s sovereign wealth fund giant, has been discreetly increasing its Bitcoin exposure—with a unique twist.
They have strategically increased their indirect holdings by 153% by placing a shrewd wager on MicroStrategy, rather than rushing headfirst into the volatile crypto market.
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By the conclusion of 2024, NBIM had acquired approximately $500 million in MicroStrategy, which amounted to more than 1.1 million shares.
Norway is able to pursue the potential advantages of Bitcoin without the discomfort of direct crypto ownership, thanks to this clever strategy.
Betting On Bitcoin—Without Purchasing A Single Coin
The most important point is Norway’s fund does not actively participate in Bitcoin. Instead, they are using MicroStrategy’s significant BTC holdings—akin to investing in a gold rush shovel manufacturer instead of digging for gold alone.
Maintaining MicroStrategy shares helps NBIM avoid the problems related to cryptocurrencies: no regulatory gray areas, custody issues, or restless nights brought on by market swings.
And it’s paying off; their indirect crypto exposure rose from about 1,506 BTC to 3,821 BTC at year’s end. Not bad for a fund officially free of cryptocurrencies.
Norway’s indirect exposure to Bitcoin has almost tripled over the past year, as a result of increased allocations to crypto-related firms, according to K33 Research.
What’s The Rationale Behind MicroStrategy?
Therefore, why do they align themselves with this organization? MicroStrategy has emerged as the embodiment of the corporate Bitcoin craze. Their stock has become a Bitcoin barometer as a result of their aggressive purchasing spree; as BTC increases, so does their share price.
BTCUSD trading at $104,103 on the daily chart: TradingView.com
This implies that Norway’s fund can capitalize on Bitcoin’s potential without experiencing the cryptocurrency market’s volatility. It’s a win-win situation: maintain the stability of conventional investments while gaining a glimpse of the untamed side of crypto through a reputable intermediary.
NBIM's MicroStrategy investment value. Chart: NBIM
Big Money’s Crypto Playbook
This is not solely a Norwegian anomaly; it is a component of a more extensive trend. Institutional investors are gradually becoming more favorable toward cryptocurrency; however, they remain cautious regarding their own possession of digital currencies. Rather, they are employing their imagination. They are entering the crypto waters without entirely immersing themselves by supporting companies such as MicroStrategy.
Related Reading: Coinbase Gains Approval To Tap Into Argentina’s Crypto Market
Eggs In Other Baskets
Apart from MicroStrategy, Norges Bank Investment Management also owns stock in multiple companies that deal with Bitcoin. These include Tokyo-based Metaplanet, cryptocurrency exchange Coinbase, Bitcoin mining companies Marathon Digital and Riot Platforms, and Tesla.
Featured image from Gemini Imagen, chart from TradingView
