Emily Walker
Norges Bank Investment Management (NBIM), the major sovereign wealth fund of Norway, has been subtly expanding its investment in Bitcoin in a distinctive manner.
Instead of directly entering the volatile cryptocurrency market, they have cleverly increased their indirect stake by 153% through a substantial investment in MicroStrategy.
By the end of 2024, NBIM had invested roughly $500 million in MicroStrategy, acquiring over 1.1 million shares.
This innovative approach allows Norway to gain potential benefits from Bitcoin without directly owning any cryptocurrency.
Investing in Bitcoin—Without Holding Any
The key takeaway is that Norway’s fund does not engage in Bitcoin trading directly. Instead, they benefit from MicroStrategy’s substantial BTC holdings, similar to investing in a company that supplies essential tools for gold mining rather than searching for gold themselves.
Norway’s Bold Crypto Move!
$500M Investment: Norway’s sovereign fund acquires 1.123M shares in MicroStrategy
Bitcoin Exposure: Holdings surge 153% in 2024, now at 3,821 BTC
Global Positioning: Now among the largest institutional Bitcoin holders
Strategic Shift:… pic.twitter.com/GRKJ3KVadL
— MoneyDubai (@MoneyDubai_ae) January 30, 2025
Maintaining their MicroStrategy shares allows NBIM to sidestep issues typically associated with holding cryptocurrencies, such as regulatory concerns, custody challenges, and the stress from market fluctuations.
The strategy has yielded positive results; their indirect Bitcoin exposure climbed from approximately 1,506 BTC to 3,821 BTC by year’s end. Quite impressive for a fund that officially does not invest in cryptocurrencies.
K33 Research indicates that Norway’s indirect Bitcoin holdings have nearly tripled within the last year due to increased investments in crypto-related companies.
The Norwegian sovereign wealth fund (NBIM) indirectly holds 3,821 BTC, reflecting an increase of 1,375 BTC since June 30, 2024, and a yearly growth of 2,314 BTC—a 153% increase compared to its end-of-year 2023 holdings.
It is important to highlight that this exposure likely… pic.twitter.com/seQ12cM2Rn— Vetle Lunde (@VetleLunde) January 29, 2025
Why Choose MicroStrategy?
So what drives their alliance with this company? MicroStrategy has become a symbol of the Bitcoin business boom. Their extensive stock purchases have positioned their shares as a measure of Bitcoin’s performance; when Bitcoin’s value increases, so does their stock price.
This means that Norway’s investment can benefit from Bitcoin’s growth without facing the inherent price volatility of the crypto market. It’s a strategic advantage: preserving the safety of traditional investments while gaining exposure to the adventurous cryptocurrency environment through a reputable vehicle.
This trend isn’t limited to Norway; it reflects a growing tendency among institutional investors to adopt a more favorable stance towards cryptocurrency. However, they are cautious in holding digital assets directly. Instead, they’re strategically entering the cryptocurrency space by investing in firms like MicroStrategy.
Diversification Strategy
In addition to MicroStrategy, Norges Bank Investment Management has stakes in several companies involved in Bitcoin, including Tokyo-based Metaplanet, cryptocurrency platform Coinbase, Bitcoin mining enterprises such as Marathon Digital and Riot Platforms, and even Tesla.
Featured image from Gemini Imagen, chart from TradingView