Mubadala Boosts Bitcoin Holdings by 6% Despite Price Drop

Mubadala Investment Company, a sovereign wealth fund based in Abu Dhabi, has increased its Bitcoin exposure by acquiring over 491,000 shares of the spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), during the first quarter of 2025. This move comes despite a decline in Bitcoin's price below $90,000. As of March 31, Mubadala held 8,726,972 shares of IBIT, marking a 6% increase from the previous quarter. The value of these shares was approximately $408.5 million at the end of March and over $512 million at current prices. This investment represents roughly 0.14% of Mubadala's total assets under management, which stands at $302 billion.

Mubadala's decision to increase its Bitcoin holdings reflects a strategic commitment to the cryptocurrency, despite broader market volatility. The fund's investment in IBIT is part of a broader trend among institutional investors who are increasingly integrating crypto assets into their portfolios. Mubadala's move is significant as it is one of the largest sovereign wealth funds in the region, with other notable state-owned investment vehicles including the Abu Dhabi Investment Authority (ADIA), the Abu Dhabi Developmental Holding Company (ADQ), and the Emirates Investment Authority (EIA).

In contrast, the State of Wisconsin Investment Board (SWIB), which manages assets for the Wisconsin Retirement System and other state-managed funds, has exited its Bitcoin ETF exposure. As of March 31, SWIB reported no holdings in Bitcoin ETFs, effectively liquidating its position in the first quarter. Previously, SWIB held 6,060,351 shares of IBIT valued at $321.5 million in its fourth quarter filing, representing a 110% increase from the 2,898,051 shares it held during the second quarter of 2024. SWIB's exit from Bitcoin ETFs suggests a reassessment of short-term exposure to crypto through ETF structures, possibly due to reduced risk tolerance or a shift in portfolio strategy.

The divergent strategies between Mubadala and SWIB highlight the varying approaches of institutional investors toward Bitcoin amid a volatile pricing environment. While Mubadala chose to expand its exposure through a higher share count despite a declining asset value, SWIB's liquidation indicates a more cautious stance. Both filings provide updated data on how institutional investors are responding to Bitcoin's volatility through ETF-based access as traditional finance continues to integrate with crypto assets.