Bitcoin News Today: Vanguard Becomes Largest Shareholder in Bitcoin-Focused Strategy Inc. with 8% Stake

Vanguard Group, a prominent fund management firm, has recently become the largest shareholder in Strategy Inc., a company that holds a significant amount of Bitcoin. Vanguard now holds over 20 million shares, representing nearly 8% of Strategy’s outstanding Class A common stock. This development is noteworthy given Vanguard's previous public statements about the immaturity of Bitcoin and its refusal to offer Bitcoin and Ethereum exchange-traded funds (ETFs). The firm's investment philosophy has traditionally steered clear of speculative assets, focusing instead on long-term, value-driven investments. However, the acquisition of such a substantial stake in Strategy suggests a shift in Vanguard's approach, or at least a recognition of the growing institutional interest in Bitcoin.

Michael Saylor, the co-founder of Strategy, welcomed Vanguard's investment, describing it as a "powerful signal" of institutional backing for Bitcoin and Bitcoin treasury strategies. Saylor's comments highlight the increasing acceptance of Bitcoin within traditional financial circles, despite Vanguard's earlier reservations. This paradox underscores the complex and evolving nature of the financial landscape, where even the most cautious investors are beginning to acknowledge the potential of digital assets.

Vanguard's stake in Strategy gives the firm indirect exposure to over 200,000 Bitcoin held on Strategy's balance sheet, representing a 26.3% jump between January and April 2025. Despite its indirect exposure to Bitcoin, Vanguard has steadfastly refused to offer direct crypto investment products, such as Bitcoin ETFs. This contrasts with the firm's growing willingness to gain Bitcoin exposure through traditional equity investments. The situation highlights the duality of Vanguard's stance on Bitcoin, where the firm's actions seem to contradict its public statements, reflecting the broader financial community's evolving views on digital currencies.

Strategy's shares have seen a significant increase this year, with a roughly 55% gain so far. This increase in Strategy's stock value and Bitcoin holdings further emphasizes the growing institutional interest in digital assets, despite the skepticism from some traditional financial institutions. The firm's investment in Strategy suggests a growing willingness to gain Bitcoin exposure through traditional equity investments, even as it maintains its public stance against direct crypto investments. This paradox underscores the complex and evolving nature of the financial landscape, where even the most cautious investors are beginning to acknowledge the potential of digital assets.

Vanguard is benefiting from the recent surge in Bitcoin’s value despite maintaining a firm stance against direct involvement in cryptocurrency investments. The financial institution holds nearly 20 million shares in Strategy, the rebranded name of MicroStrategy, which is one of the largest corporate holders of Bitcoin globally. Strategy’s stock has surged in recent weeks alongside Bitcoin’s rally. Vanguard stands as the top institutional shareholder of the company. This exposure comes not from a deliberate move into cryptocurrency but rather through its passive index investment strategy. Shares of Strategy are included in indices like the Russell 1000, which Vanguard funds track.

Vanguard’s investment model focuses on low-cost, passive indexing. As Strategy is part of various major indices, Vanguard funds automatically include these shares. Consequently, when Strategy’s stock rises due to Bitcoin price increases, Vanguard’s assets under management (AUM) grow, resulting in higher management fees and fund valuations. Despite this exposure, Vanguard continues to reject the idea of offering spot Bitcoin exchange-traded funds (ETFs). The platform does not allow clients to purchase spot Bitcoin ETFs, even as competitors like BlackRock experience success in the sector. Vanguard executives have previously dismissed Bitcoin as lacking economic value and being unsuitable for long-term investors.

The situation has drawn criticism from digital asset advocates. Matthew Sigel of VanEck pointed to the inconsistency, suggesting that Vanguard’s significant stake in Strategy contradicts its public stance. He described the scenario as “institutional dementia,” referencing the contradiction between Vanguard’s disapproval of Bitcoin and its financial benefit from its rising value. Vanguard clients cannot buy spot Bitcoin ETFs, highlighting the firm’s consistent avoidance of direct crypto offerings despite market demand.