Bitcoin News Today: Vanguard Indirectly Holds 200,000 Bitcoin Through MicroStrategy Stake

Vanguard, a prominent global investment firm, has become the largest institutional shareholder of MicroStrategy, a company known for its significant Bitcoin holdings. According to data from an investment research platform, Vanguard now holds over 20 million shares of MicroStrategy, representing approximately 8% of the company’s outstanding Class A common stock. This substantial stake means Vanguard is indirectly exposed to the more than 200,000 Bitcoin that MicroStrategy holds as its primary treasury reserve asset. This exposure has increased by 26.3% from January to April 2025.

Vanguard’s indirect exposure to Bitcoin comes through its various index and mutual funds, including the Vanguard Total Stock Market Index Fund, which includes MicroStrategy in its broad U.S. equity allocation. Additionally, MicroStrategy is part of multiple Vanguard mutual funds and ETFs that track mid-cap benchmarks.

Despite this growing indirect exposure to Bitcoin, Vanguard has maintained a cautious stance on cryptocurrency. The firm has consistently warned clients about the volatility of digital assets and has declined to offer spot Bitcoin ETFs, unlike some of its competitors. In a recent interview, Vanguard CEO Salim Ramji stated that the company would not change its approach to cryptocurrencies, emphasizing that Vanguard is focused on long-term, dependable investments rather than speculative assets like Bitcoin. Ramji highlighted that such moves are inconsistent with the investment philosophy Vanguard has built over five decades.

Vanguard’s unexpected exposure to Bitcoin through its stake in MicroStrategy has brought attention to the realities of passive investing. Passive index funds require holding all stocks within the index, regardless of the company’s focus or the manager’s personal views on certain assets. This situation underscores how index investing can lead to unintended exposure to assets that the fund manager may not endorse. This highlights the complexities and potential surprises that can arise from passive investment strategies.