Government Entities Boost MSTR Holdings by 3,100 BTC in Q1

Government entities have increased their holdings of Strategy (MSTR), a bitcoin proxy, during the first quarter, according to new data from the U.S. Securities and Exchange Commission (SEC). This information was highlighted in a research report released by investment bank Standard Chartered on Tuesday. Geoff Kendrick, head of digital assets research at Standard Chartered, noted that in some cases, MSTR holdings by government entities reflect a desire to gain bitcoin exposure where local regulators do not allow direct BTC holdings.

Strategy, which pioneered the bitcoin treasury model where corporates hold the crypto on their balance sheet as a reserve asset, currently holds 576,230 BTC worth around $59 billion at current market prices. The bank observed that both Norway's Government Pension Fund and the Swiss National Bank (SNB) increased their Strategy holdings by the equivalent of 700 bitcoin in the first quarter. Additionally, the South Korean National Pension Service and the Korea Investment Corporation expanded their holdings by a combined 700 BTC equivalent. U.S. state retirement funds, including those from California, New York, and North Carolina, together added to their holdings the equivalent of 1,000 bitcoin. AP Funds in Sweden and Landesbank in Liechtenstein also grew their MSTR holdings marginally. Furthermore, France's Caisse des Dépôts et Consignations (CDC) and the Saudi Central Bank both added a small position in MSTR for the first time.

According to the report, bitcoin exchange-traded fund (ETF) direct holding data was "disappointing" overall in the first quarter. However, the bank stated that the most recent 13F data supports its central thesis that bitcoin will reach $500,000 before President Trump leaves office as the cryptocurrency attracts a wider range of institutional buyers. This suggests that there is an increased structural demand for BTC, driven by government entities seeking exposure to bitcoin through MSTR holdings.