Vanguard Is Now the Top Investor in MicroStrategy Stock. Should You Buy MSTR Too?

In a surprising turn of events, Vanguard has emerged as the largest institutional shareholder of MicroStrategy (MSTR), holding 20.5 million shares worth approximately $9.26 billion, representing 8.55% ownership of the company. This development marks a shift for the world’s second-largest asset manager, which previously dismissed Bitcoin (BTCUSD) as “an immature asset class.”

The investment positions Vanguard as the top holder in MicroStrategy, the world’s largest publicly listed corporate Bitcoin holder, with 601,550 Bitcoin valued at $74 billion.

Vanguard has previously criticized Bitcoin, with executives calling the cryptocurrency “speculative” and warning that it could create portfolio “havoc.”

While competitors like BlackRock (BLK) and Fidelity launched spot Bitcoin ETFs in January 2024, Vanguard notably abstained from the crypto rush. The firm maintained its stance even as Bitcoin reached an all-time high of $123,000 earlier this month. Additionally, Vanguard CEO Salim Ramji recently reaffirmed that the company doesn’t make bets on “speculative assets,” such as Bitcoin.

This quiet accumulation of MicroStrategy shares suggests Vanguard may be gaining indirect Bitcoin exposure while maintaining its public skepticism toward direct cryptocurrency investments, highlighting the complex dynamics between traditional asset managers and digital assets.

Strategy, formerly known as MicroStrategy, has become the poster child for Bitcoin treasury companies. Over the last five years, MSTR stock has surged more than 3,700%, outpacing the nearly 1,200% returns of Bitcoin.

This remarkable outperformance stems from Strategy’s aggressive Bitcoin accumulation strategy, which began in August 2020. Strategy now holds more than 600,000 BTC on its balance sheet, making it the world’s largest corporate Bitcoin holder by a wide margin. Executive Chairman Michael Saylor has transformed the software company into what he calls “the world’s first Bitcoin treasury company.”

Strategy’s success has sparked a wave of imitators. Even failing businesses are pivoting to Bitcoin treasury strategies, hoping to revitalize their stock prices through exposure to cryptocurrency.