Vanguard Tops Bitcoin Shadow Stock Strategy Holdings
Vanguard has unexpectedly become the largest shareholder of the Bitcoin shadow stock Strategy (formerly MicroStrategy), acquiring over 20 million A-class shares (around 8% of stock) through its index funds.
Strategy holds nearly $70 billion in Bitcoin on its balance sheet and trades at a 100%–200% premium over its net crypto reserves. The Bitcoin shadow stock Strategy has attracted passive index fund inflows, embedding BTC value into US equity indices.
These dynamics reflect rising institutional demand for regulated Bitcoin exposure when direct holdings or ETFs are restricted. Other traditional funds, including Capital Group, also hold Strategy shares.
Meanwhile, Strategy’s Bitcoin custody details remain confidential under SEC Rule 83, with filings hinting at nine leading custodians but no exact names. The company’s stock performance has been boosted by Bitcoin accumulation, ETF inflows and market optimism, sending MSTR to record highs.
Traders should watch updates on Bitcoin custody, institutional buying, crypto treasury fund launches and Ethereum staking strategies pending SEC clarity.
Bullish
This news is bullish for Bitcoin. In the short term, Vanguard’s move to become the top shareholder in the Bitcoin shadow stock Strategy signals robust institutional demand, likely boosting market sentiment and driving price support. The confirmed premium and passive inflows into Strategy embed BTC value in equity indices, potentially attracting further capital. In the long term, heightened institutional involvement, ongoing ETF inflows, and emerging crypto treasury strategies can enhance liquidity and stability, underpinning sustainable price growth.