Norway’s Government Pension Fund Global, managed by Norges Bank Investment Management, has made a notable allocation of its 18 trillion Krone ($1.7 trillion) fund into MicroStrategy, a company led by Michael Saylor and known for its substantial Bitcoin holdings.
According to reports dated June 30, 2024, Norway’s sovereign wealth fund had invested $217 million into MicroStrategy, giving it a 0.89% share.
MicroStrategy, led by Michael Saylor, has become a major proxy for Bitcoin investments, given its ownership of 226,500 Bitcoins. The substantial Bitcoin holding has rendered MicroStrategy’s stock highly responsive to value changes.
Norges Bank’s increased interest in the company is part of an investment strategy focusing on diversification rather than endorsing Bitcoin.
Norges Bank initiated investments in MicroStrategy in 2008 and has tripled its share over the past year. Nevertheless, Saylor retains majority control with 52.9% voting power at MicroStrategy compared to the funds’ 0.45% voting rights.
The choice to augment their investment in MicroStrategy mirrors Norges Bank’s approach to managing Norway’s wealth fund, which now stands at $1.7 trillion. The fund upholds a portfolio spanning 66 countries. It includes investments in equities, bonds, and real estate holdings, among others, with stakes held in over 8,700 companies.
MicroStrategy’s presence in indices such as the MSCI All Country World Index and the Russell 2000 Index highlights why Norges Bank finds it appealing. The bank’s strategy focuses on long-term growth and stability, utilizing its oil and gas industry profits.
Despite fluctuations in MicroStrategy market value and Bitcoin holdings, Norges Bank’s broad investment approach ensures a rounded risk management strategy.
Norges Bank’s increasing investment in MicroStrategy demonstrates its dedication to an investment portfolio. This decision does not show confidence in MicroStrategy’s market position. It also aligns with a broader strategy to effectively manage the world’s largest sovereign wealth fund.
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