Norway’s Central Bank Fund, also known as the Government Pension Fund Global (GPFG), has disclosed a significant stake in MicroStrategy, the leading business intelligence company that has famously embraced Bitcoin as part of its corporate strategy. The fund has acquired approximately $500 million worth of MicroStrategy shares (MSTR), marking a bold move in its investment strategy.
The investment is viewed as recognizing MicroStrategy’s strategy to allocate a significant portion of its treasury reserves to Bitcoin. Following the latest purchase, the company now owns over 471,101 BTC, positioning itself as one of the largest corporate BTC holders.
GPFG Invests in Low-Risk Assets
Although GPFG has typically focused on conservative, low-risk assets, its choice to invest in a company with such substantial BTC exposure underscores the increasing integration of digital assets into mainstream financial markets.
Historically, the Government Pension Fund Global has been cautious in its investment strategy, favoring bonds, equities, and real estate with minimal exposure to high-risk assets like digital assets. However, its decision to invest in MicroStrategy indicates a potential change in strategy, perhaps reflecting an increasing recognition of bitcoin’s long-term value and the company’s pioneering role in adopting the asset.
As of December 6, 2024, GPFG had invested about 70% of its assets in global stocks, about 25% in bonds, and the rest in real estate and renewable energy plants. Most of its portfolio tracks international market indexes.
MicroStrategy Acquires Bitcoin
The Central Bank Fund’s investment in MicroStrategy could also safeguard against global inflation and the ongoing discussions about the asset’s role as a store of value. While MicroStrategy’s approach of gradually acquiring BTC has received both praise and criticism, it has undeniably highlighted bitcoin’s potential as an alternative asset class.
Under the leadership of CEO Michael Saylor, MicroStrategy has been one of the most outspoken corporate advocates for Bitcoin. The firm’s decision to utilize its balance sheet to accumulate BTC began in 2020, and since then, it has made numerous purchases.
The investment also came at a time when BTC was starting to recover from a market correction. The price of the digital asset has hovered between $95,000 and $101,000. As of the time of publication, the asset was changing hands at over $105,200 after it reached an all-time high of $109,000 a few weeks back.