Norway’s got a secret up its sleeve, and it’s all about Bitcoin! Norges Bank Investment Management (NBIM), the country’s big cheese when it comes to wealth funds, has been quietly increasing its Bitcoin exposure with a twist that’ll make you chuckle.
Instead of diving headfirst into the wild and wacky world of cryptocurrencies, they’ve decided to play it smart by placing a clever bet on MicroStrategy. That’s right, they’ve increased their indirect holdings by a whopping 153%!
By the end of 2024, NBIM had acquired approximately $500 million in MicroStrategy, which amounted to more than 1.1 million shares. And guess what? They’re doing all this without owning a single Bitcoin!
Betting on Bitcoin – Without Buying a Single Coin!
The most important point is Norway’s fund does not actively participate in Bitcoin. Instead, they are using MicroStrategy’s significant BTC holdings – akin to investing in a gold rush shovel manufacturer instead 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 largest institutional Bitcoin holders
Strategic Shift:…
— MoneyDubai (@MoneyDubai_ae) January 30, 2025
Maintaining MicroStrategy shares helps NBIM avoid the problems related to cryptocurrencies: no regulatory gray areas, custody issues, or restless nights brought on by market swings.
And it’s paying off; their indirect crypto exposure rose from about 1,506 BTC to 3,821 BTC at year’s end. Not bad for a fund officially free of cryptocurrencies.
Norway’s indirect exposure to Bitcoin has almost tripled over the past year, as a result of increased allocations to crypto-related firms, according to K33 Research.
The Norwegian sovereign wealth fund (NBIM) indirectly holds 3,821 BTC, reflecting an increase of 1,375 BTC since June 30, 2024, and a yearly growth of 2,314 BTC—a 153% increase compared to its end-of-year 2023 holdings.
It is important to highlight that this exposure likely…— Vetle Lunde (@VetleLunde) January 29, 2025
What’s The Rationale Behind MicroStrategy?
So, why do they align themselves with this organization? MicroStrategy has emerged as the embodiment of the corporate Bitcoin craze. Their stock has become a Bitcoin barometer as a result of their aggressive purchasing spree; as BTC increases, so does their share price.
This implies that Norway’s fund can capitalize on Bitcoin’s potential without experiencing the cryptocurrency market’s volatility. It’s a win-win situation: maintain the stability of conventional investments while gaining a glimpse of the untamed side of crypto through a reputable intermediary.
Big Money’s Crypto Playbook
This is not solely a Norwegian anomaly; it is a component of a more extensive trend. Institutional investors are gradually becoming more favorable toward cryptocurrency; however, they remain cautious regarding their own possession of digital currencies. Rather, they are employing their imagination. They are entering the crypto waters without entirely immersing themselves by supporting companies such as MicroStrategy.
Eggs In Other Baskets
Apart from MicroStrategy, Norges Bank Investment Management also owns stock in multiple companies that deal with Bitcoin. These include Tokyo-based Metaplanet, cryptocurrency exchange Coinbase, Bitcoin mining companies Marathon Digital and Riot Platforms, and Tesla.
Read More
- REPO: All Guns & How To Get Them
- Unlock the Ultimate Armor Sets in Kingdom Come: Deliverance 2!
- 6 Best Mechs for Beginners in Mecha Break to Dominate Matches!
- Top 5 Swords in Kingdom Come Deliverance 2
- LUNC PREDICTION. LUNC cryptocurrency
- REPO: How To Play Online With Friends
- BTC PREDICTION. BTC cryptocurrency
- One Piece 1142 Spoilers: Loki Unleashes Chaos While Holy Knights Strike!
- How to Reach 80,000M in Dead Rails
- Unleash Willow’s Power: The Ultimate Build for Reverse: 1999!
2025-01-31 19:45