How times have changed.
It was reported earlier today that Vanguard has emerged as the largest investor in Microstrategy (NASDAQ:MSTR) [now called Strategy], the company that pretty much wrote the book on becoming a Bitcoin treasury play.
The Street shares that according to new data Vanguard now holds approximately 20.5 million Microstrategy shares or 8.55% of the firm. The company has a market cap of around $128 billion, so that means it owns about $10.9 billion of the Bitcoin proxy firm.
Vanguard is the second largest asset manager in the world so its about face is news even if Vanguard has decided to be quiet about the accumulation of Microstrategy shares.
Just last year (January 2024), Vanguard poo-pooed the rush to list Bitcoin ETFs stating:
“… given the current state of crypto as an asset class, Vanguard does not have plans to launch its own Bitcoin ETF or any crypto-related products. When deciding what investment products to offer, we consider a range of factors, including whether we believe they have enduring investment merit and meet our clients’ needs. While the discussion about Bitcoin and cryptocurrencies, in general, has increased recently, we do not currently believe that there is an appropriate role for them to play in long-term portfolios. ” [emphasis added]
I am surprised that Vanguard has left this blog post live on their site.
The post ends by stating:
“We understand that our decision on crypto is not popular among some investors, but many know that we’re being consistent with our philosophy and past practice. Our mission statement to give investors the best chance for investment success isn’t just a saying for us. It’s built into our DNA and we’re staying true to our mission by making this decision.”
I guess that Vanguard has a different definition of “staying true to their mission” and their decision not to invest in crypto. But then I guess it is better to quietly accept they were wrong then go down as the one missing the train leaving the digital asset station.
