- The Norwegian Sovereign Fund now has an indirect exhibition of 3,821 BTCs, ie about $ 400 million, especially through Microstratega and other cryptocurrency companies.
- This exhibition stems from the automated sector weight and shows how bitcoins are gradually integrated into institutional portfolios.
- NBIM holds 0.72 % of Microstratega, which represents 3,214 BTC and participation in Digital Marathon, Coinbase, Riot Platforms, Tesla and even metaplanet, reflecting growing diversification on digital assets.
Norway is exposed to Bitcoin via microstratega
The Norwegian Fund Sovereign Fund reveals an exhibition of shares of $ 500 million $ Mst Microstrategy. pic.twitter.com/mwnt9jouyqw
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The Norwegian Fund Sovereign Fund reveals an exhibition of shares of $ 500 million Norwegian Sovereign Wealth Fund’s Bitcoin Exposure Surges by 153% in 2024: A Key Indicator of Institutional Adoption
In a significant development, the Norwegian Sovereign Wealth Fund, managed by Norges Bank Investment Management (NBIM), has seen a remarkable increase in its exposure to Bitcoin. According to a report by K33 Analyst Lunde Get, the fund’s Bitcoin holdings surged by 153% in just one year, bringing the fund’s total Bitcoin exposure to 3,821 BTC (roughly valued at $400 million) by December 31, 2024. This growth primarily stems from the fund’s investments in various companies that are directly or indirectly involved with cryptocurrencies, including major players such as MicroStrategy, Riot Platforms, Digital Holdings Marathon (Mara), Coinbase, Canaan, and Metaplanet.
NBIM and Its Investment Approach
The Norges Bank Investment Management (NBIM) oversees the Global Pension Fund Global (GPFG), one of the world’s largest sovereign wealth funds with assets exceeding $1.5 trillion. Traditionally, the fund’s investment strategy has been focused on stocks, bonds, and real estate, following a diversified investment model that aims for long-term stability and growth. Despite its primary focus on these conventional asset classes, the fund has gradually been drawn into the world of digital assets through indirect exposure to Bitcoin.
NBIM’s Bitcoin exposure is not the result of a deliberate decision to invest in the cryptocurrency itself. Instead, it has happened organically through the fund’s investments in companies that hold Bitcoin on their balance sheets. According to Lunde, this is a form of automated exposure. As the companies the fund invests in increase their Bitcoin holdings, NBIM, by virtue of its equity stakes, also becomes indirectly exposed to the asset. This phenomenon is indicative of how Bitcoin and other cryptocurrencies are gradually becoming embedded in the portfolios of large institutional investors, even when they may not have actively sought out such exposure.
MicroStrategy: The Key Player in the Fund’s Bitcoin Holdings
The most significant contributor to the Norwegian Sovereign Wealth Fund’s Bitcoin exposure is MicroStrategy, the business intelligence firm led by Michael Saylor. As of the end of 2024, NBIM holds an estimated 0.72% of MicroStrategy’s total shares, which was valued at $514 million. This translates to an indirect holding of about 3,214 BTC, making up nearly 85% of the Norwegian fund’s total Bitcoin exposure.
Interestingly, this figure has increased over the course of the year. In June 2024, NBIM’s shareholding in MicroStrategy was around 0.89%, but by the year’s end, it had grown to 1.12%. The number of shares owned by the fund also rose from 1.12 million to 1.58 million over this period. This increase can be attributed to MicroStrategy’s ongoing strategy of raising funds to purchase more Bitcoin. MicroStrategy, widely recognized as a leader in Bitcoin adoption among public companies, has amassed a staggering over 100,000 BTC as part of its corporate treasury.
Expanding and Diversifying Crypto Portfolio
While MicroStrategy remains the largest contributor to the fund’s Bitcoin exposure, NBIM’s investment strategy also includes stakes in a number of other companies that are highly involved in the cryptocurrency space. These include:
- Digital Holdings Marathon (Mara): NBIM holds a 0.71% stake in Marathon, which represents 315 BTC. Marathon is one of the largest publicly traded Bitcoin mining companies and is known for its substantial Bitcoin holdings.
- Coinbase: The fund holds a 0.85% stake in Coinbase, which represents 80.6 BTC. As one of the leading cryptocurrency exchanges in the world, Coinbase is a central figure in the digital asset ecosystem.
- Riot Platforms: NBIM owns a 0.44% stake in Riot Platforms, translating to an exposure of 76.7 BTC. Riot is another prominent Bitcoin mining firm in the U.S.
- Tesla: The fund also has an indirect exposure to Bitcoin through its 1.1% stake in Tesla, which holds 106.9 BTC on its balance sheet.
Additionally, NBIM holds a smaller but notable position in Metaplanet, a cryptocurrency-related company that adds another layer of exposure to the fund’s digital assets portfolio.
These investments are emblematic of the growing institutional interest in Bitcoin and blockchain technology. Through its diversified holdings in companies that are actively engaged in Bitcoin mining, cryptocurrency exchanges, and even corporate Bitcoin treasury strategies, the fund’s exposure to the cryptocurrency market has grown substantially, even without direct investment in Bitcoin itself.
Bitcoin’s Growing Role in Institutional Portfolios
The surge in the Norwegian Sovereign Wealth Fund’s Bitcoin exposure is a clear indicator of the broader trend of institutional adoption of the cryptocurrency. From an initial $23 million in Bitcoin exposure in 2020, NBIM’s holdings ballooned to approximately $356 million by 2024. This dramatic increase illustrates the growing acceptance of Bitcoin as an asset class within traditional financial markets. The Norwegian fund’s exposure to Bitcoin, though indirect, is a reflection of the gradual shift in the investment community toward integrating digital assets into their portfolios.
This growing Bitcoin exposure within institutional portfolios could have a significant impact on the wider financial ecosystem. As more sovereign wealth funds, pension funds, and large institutional investors begin to diversify into Bitcoin, the cryptocurrency’s role as a store of value and hedge against inflation is likely to strengthen.
Implications for Norwegian Citizens
One of the most interesting aspects of the Norwegian Sovereign Wealth Fund’s Bitcoin holdings is its indirect effect on Norwegian citizens. Given that the fund is essentially a national savings account for the people of Norway, every citizen has a stake in its performance. As of the end of 2024, each Norwegian citizen indirectly owns an estimated 68,837 Satoshis, worth around $64. This may seem like a small amount per person, but it highlights the growing role of Bitcoin in long-term investment strategies, even for individuals who may not be directly involved in the cryptocurrency market.
As Bitcoin continues to mature and its adoption spreads across the globe, it is likely that more governments and institutions will seek to integrate it into their financial strategies, mirroring the example set by the Norwegian Sovereign Wealth Fund. Over time, this could lead to a deeper integration of Bitcoin into traditional investment portfolios, further cementing its place as a key financial asset in the modern economy.
Conclusion: A Clear Sign of Maturity in the Crypto Market
The Norwegian Sovereign Wealth Fund’s increased exposure to Bitcoin serves as a significant marker of the maturation of the cryptocurrency market. The fund’s indirect exposure through investments in companies like MicroStrategy, Marathon, Coinbase, and others showcases how institutional investors are slowly but surely embracing the cryptocurrency ecosystem. This trend is likely to continue, especially as the market for tokenized assets and blockchain-based financial products expands.
As Bitcoin becomes an increasingly important part of global investment portfolios, the actions of institutions like NBIM will play a crucial role in shaping the future of digital assets. For now, the 153% increase in the fund’s Bitcoin holdings stands as a testament to Bitcoin’s growing influence on traditional financial markets and its potential to become a central asset in the portfolios of large institutional investors.