After Years of Bitcoin Criticism, Vanguard Becomes Strategy’s Largest Backer
With a $9 billion position in bitcoin proxy Strategy Inc.—helmed by Michael Saylor—investment powerhouse Vanguard has rattled markets, laying bare stark contradictions between its anti-crypto rhetoric and actual holdings.
Key Takeaways:
ShowVanguard Tops Strategy Shareholders Despite Crypto Skepticism
Institutional missives and portfolio realities are diverging sharply as major passive managers undercut their public views.
Vanguard Group—among the globe’s biggest asset managers—now ranks as the leading stakeholder in Strategy Inc. (MicroStrategy), a firm closely tied to bitcoin advocacy.
Despite years of dismissing cryptocurrencies as speculative and devoid of intrinsic worth, Vanguard holds over 20 million MSTR shares—roughly $9.26 billion in exposure—across both index-tracking and active funds.
These positions stem largely from passive index mandates, not deliberate crypto investments, yet they spotlight a profound gap between Vanguard’s public stance and its actual allocation.
Senior executives, including CIO Duncan Burns, have repeatedly labeled bitcoin volatile and lacking fundamental support, and CEO Salim Ramji reaffirmed in August 2024 that Vanguard would shun a crypto ETF, focusing instead on “client-focused innovation, not mirroring rivals.”
That disconnect has drawn ire. On July 14, Matthew Sigel of VanEck quipped on X:
“Vanguard: Bitcoin is immature and has no value. Also Vanguard: Buys 20 M shares of MSTR, becomes top backer of bitcoin’s loudest bull. Indexing into $9 B of what you openly mock isn’t strategy. It’s institutional dementia.”
Final Take
Vanguard’s sizeable MicroStrategy stake reveals how passive mandates can force major firms into assets they publicly deride, exposing the tension between index-driven holdings and vocal skepticism.
