- Vanguard now owns over 8% of Bitcoin-focused Strategy through passive index fund exposure.
- Despite the stake, Vanguard maintains a strong anti-Bitcoin stance, calling it speculative and risky.
- The situation reflects a broader tension between ideology and index-driven investing.
Vanguard has overtaken Capital Group to become the largest institutional shareholder of Strategy, formerly known as MicroStrategy, despite its ongoing rejection of Bitcoin as a viable investment. Bloomberg reports Vanguard now owns over 20 million shares – more than 8% of Strategy’s common stock.
This exposure stems from Vanguard’s passive index funds, including Total Stock Market Index Fund (VITSX), the Vanguard Extended Market Index Fund (VIEIX) and the Vanguard Growth ETF (VUG), which track broad market indices. Strategy qualifies for inclusion in these funds, not through targeted investment, but due to its market capitalisation and stock performance.
Under executive chairman Michael Saylor, Strategy has pivoted into a corporate Bitcoin vault. Its latest purchase added 4,225 BTC for US$472.5 million (AU$721.6 million), at an average price of US$111,827 (AU$170,785) per coin. The company now holds over 601,550 BTC.
Related: Bitcoin Drops Below $120K as Analysts Reveal What’s Next After the All‑Time High
Vanguard’s Unyielding Position on Crypto
Vanguard, however, remains staunchly anti-Bitcoin. The firm has repeatedly labelled the asset speculative and unsuitable for long-term portfolios, refusing to offer clients access to spot Bitcoin ETFs – despite the success of rivals like BlackRock.
Former CEO Tim Buckley consistently rejected Bitcoin’s place in retirement portfolios, maintaining that it did not belong there. His successor, Salim Ramji, has yet to shift Vanguard’s stance despite a crypto-friendly reputation.
I think it’s important for firms to have consistency in terms of what they stand for and the products and services they offer.
Salim Ramji, CEO, Vanguard Commentators have pointed to the irony. Bloomberg’s Eric Balchunas said index investors must own qualifying stocks, regardless of opinion. VanEck’s Matthew Sigel criticised Vanguard’s position as a contradiction between its rhetoric and investment outcomes.
As index-based strategies continue to dominate capital flows, Vanguard’s stake in Strategy highlights a growing disconnect between stated investment philosophy and the realities of passive ownership.
Related: BlackRock’s IBIT Breaks Records, Accumulates Unprecedented 700k Bitcoin
