Norges Bank Investment Management (NBIM), Norway’s sovereign wealth fund big, has been discreetly growing its Bitcoin publicity—with a novel twist.
They have strategically elevated their oblique holdings by 153% by inserting a shrewd wager on MicroStrategy, somewhat than dashing headfirst into the unstable crypto market.
By the conclusion of 2024, NBIM had acquired roughly $500 million in MicroStrategy, which amounted to greater than 1.1 million shares.
Norway is ready to pursue the potential benefits of Bitcoin with out the discomfort of direct crypto possession, due to this intelligent technique.
Betting On Bitcoin—Without Purchasing A Single Coin
The most essential level is Norway’s fund doesn’t actively take part in Bitcoin. Instead, they’re utilizing MicroStrategy’s vital BTC holdings—akin to investing in a gold rush shovel producer as a substitute of digging for gold alone.
🇳🇴 Norway’s Bold Crypto Move!
💰 $500M Investment: Norway’s sovereign fund acquires 1.123M shares in MicroStrategy
📈 Bitcoin Exposure: Holdings surge 153% in 2024, now at 3,821 BTC
🌍 Global Positioning: Now among the many largest institutional Bitcoin holders
🔄 Strategic Shift:… pic.twitter.com/GRKJ3KVadL
— MoneyDubai (@MoneyDubai_ae) January 30, 2025
Maintaining MicroStrategy shares helps NBIM keep away from the issues associated to cryptocurrencies: no regulatory grey areas, custody points, or stressed nights introduced on by market swings.
And it’s paying off; their oblique crypto publicity rose from about 1,506 BTC to three,821 BTC at yr’s finish. Not dangerous for a fund formally freed from cryptocurrencies.
Norway’s oblique publicity to Bitcoin has nearly tripled over the previous yr, on account of elevated allocations to crypto-related companies, based on K33 Research.
The Norwegian sovereign wealth fund (NBIM) not directly holds 3,821 BTC, reflecting a rise of 1,375 BTC since June 30, 2024, and a yearly development of two,314 BTC—a 153% improve in comparison with its end-of-year 2023 holdings.
It is essential to spotlight that this publicity possible… pic.twitter.com/seQ12cM2Rn— Vetle Lunde (@VetleLunde) January 29, 2025
What’s The Rationale Behind MicroStrategy?
Therefore, why do they align themselves with this group? MicroStrategy has emerged because the embodiment of the company Bitcoin craze. Their inventory has turn into a Bitcoin barometer on account of their aggressive buying spree; as BTC will increase, so does their share worth.
BTCUSD buying and selling at $104,103 on the each day chart: TradingView.com
This implies that Norway’s fund can capitalize on Bitcoin’s potential with out experiencing the cryptocurrency market’s volatility. It’s a win-win state of affairs: keep the soundness of typical investments whereas gaining a glimpse of the untamed facet of crypto via a good middleman.
NBIM's MicroStrategy funding worth. Chart: NBIM
Big Money’s Crypto Playbook
This will not be solely a Norwegian anomaly; it’s a element of a extra intensive pattern. Institutional traders are regularly turning into extra favorable towards cryptocurrency; nevertheless, they continue to be cautious relating to their very own possession of digital currencies. Rather, they’re using their creativeness. They are getting into the crypto waters with out totally immersing themselves by supporting corporations similar to MicroStrategy.
Eggs In Other Baskets
Apart from MicroStrategy, Norges Bank Investment Management additionally owns inventory in a number of corporations that take care of Bitcoin. These embody Tokyo-based Metaplanet, cryptocurrency trade Coinbase, Bitcoin mining corporations Marathon Digital and Riot Platforms, and Tesla.
Featured picture from Gemini Imagen, chart from TradingView
