Despite openly rejecting Bitcoin as an investment asset, investment giant Vanguard has become the largest institutional shareholder of Strategy (formerly MicroStrategy), a company actively investing in Bitcoin, according to Bloomberg.
Vanguard controls nearly 8% of Strategy's shares, worth $9.26 billion, including over 20 million securities. The largest stake of 5.7 million shares belongs to the Total Stock Market Index Fund (VITSX).
Interestingly, this acquisition wasn't a deliberate decision by Vanguard's managers. As reported in Vanguard criticizing Bitcoin accidentally becomes Strategy top investor, the company follows a passive strategy, with its funds automatically buying stocks included in major market indices. Thus, Strategy's inclusion in these indices led to its increased presence in Vanguard's portfolios.
Vanguard's leadership has repeatedly expressed skepticism toward cryptocurrencies. Former CEO Tim Buckley called them an "immature speculative asset" and "unsuitable" for long-term investors. The firm also refused to list spot Bitcoin ETFs despite growing market demand.
Bloomberg analyst Eric Balchunas commented on the irony: "God has a sense of humor. By following passive index investing, Vanguard must own all index stocks—regardless of personal preferences."
Meanwhile, Strategy founder Michael Saylor sees this as a significant signal, indicating Bitcoin's growing legitimacy in traditional finance and its adoption as a reserve asset.