Vanguard becomes the largest shareholder in the company that holds the most Bitcoin in the world.

Vanguard, one of the world's largest financial companies and a long-time Bitcoin skeptic, has become the largest shareholder in Strategy, the company with the most BTC in its treasury, revealing involuntary exposure to the cryptocurrency through index funds.

Vanguard Group has terminated a significant stake in Strategy, Michal Saylor's public company, which holds the most Bitcoin in its treasury. With over 20 million MSTR shares, Vanguard is the largest individual shareholder in Strategy, representing nearly 8% of ordinary shares On circulation.

Interestingly, this exposure wasn't the result of a strategic decision or a change in stance on cryptocurrencies. Vanguard has historically been critical of Bitcoin, calling it a speculative, volatile asset unsuitable for long-term portfolios. However, Strategy's inclusion in stock indices such as the Nasdaq 100 forced Vanguard to automatically acquire its shares., as part of its passive investment policy based on index funds.

Strategy: A company built on Bitcoin

Strategy, formerly known as MicroStrategy, has redefined its business model since 2020, accumulating over $70.000 billion in Bitcoin. Under Michael Saylor's leadership, the company has made BTC its primary treasury asset, making periodic purchases that have solidified its position as the largest corporate Bitcoin holder in the world.

According to data consulted on the Bitcoin Treasuries platform, Strategy currently owns, 601.500 BTC.

Its focus on massive bitcoin accumulation has had a direct impact on the value of its shares (MSTR), which have seen growth of approximately 3.700% in five years, in parallel with the rise in Bitcoin's market price. Strategy's latest acquisition, worth $472 million, added another 4.225 BTC to its treasury, reinforcing its strategy of accumulating this cryptocurrency. 

Vanguard: Passive investing, active exposure

Vanguard's stake in Strategy is spread across several of its funds, including the Vanguard Total Stock Market Index Fund (VITSX), the Vanguard Extended Market Index Fund (VIEIX), and the Vanguard Growth ETF (VUG). Bloomberg analysts they said that, together, these positions add up an exhibition valued at more than $9.260 billion, making Vanguard the largest institutional sponsor of Strategy.

The paradox is that Vanguard doesn't offer cryptocurrency ETFs on its brokerage platform and maintains restrictive policies for its clients in this digital asset class. Tim Buckley, who was CEO of the firm until 2024, even declared in 2023 that "Bitcoin doesn't belong in a long-term portfolio." Despite this, the firm is now deeply involved in the crypto ecosystem, albeit indirectly.

Change of course or institutional contradiction?

The situation has sparked debate among analysts and market observers. Some see this involuntary exposure as a sign that Bitcoin has become too big to ignore, even for institutions that have actively rejected its legitimacy as a financial asset.

Michael Saylor, CEO of Strategy, sees Vanguard's involvement as a "powerful signal of growing institutional support for Bitcoin" and a validation of the BTC-based treasury model his company adopted in 2020. Meanwhile, Bloomberg Intelligence analyst Eric Balchunas summed it up wryly: “God has a sense of humor.”

The contradiction, according to Balchunas, is evident. Vanguard, which has actively avoided offering crypto products, now owns a substantial stake in a company whose business revolves exclusively around Bitcoin. 

Bitcoin at all-time highs

The price of Bitcoin recently surpassed $123.000, reaching new all-time highs and fueling institutional interest in related companies. Strategy, as a Bitcoin stock proxy, directly benefits from this momentum, which in turn increases the value of Vanguard's holdings.

Some analysts predict that Vanguard could reconsider its stance in the future, especially if the price of BTC reaches $150.000 or higher and the market continues to consolidate its maturity. While there are no official signs that the firm plans to offer cryptocurrency ETFs, market pressure and client demand could force a review of its current policies. 

Vanguard and the silent integration of Bitcoin

In short, the story of Vanguard and Strategy illustrates how Bitcoin's integration into the traditional financial system can happen even without explicit intent. Passive, index-based investing has led one of the world's most conservative asset managers to become the largest shareholder in a crypto company.

Although Vanguard maintains its critical stance towards crypto assets, its exposure to Bitcoin through Strategy is a clear example of how Cryptocurrencies are penetrating conventional financial structures, not just out of conviction, but by design. In an environment where indices dictate the rules, even skeptics end up participating.