Norway’s $500M MicroStrategy Stake Puts Wall Street, Crypto Industry on Notice

Key Takeaways

• Norway’s central bank investment arm holds MicroStrategy shares valued at $500 million.
• NBIM increased its indirect Bitcoin exposure, growing from 2,446 BTC to 3,821 BTC.
• Central banks and governments will likely increase their Bitcoin holdings in 2025, driven by several factors.

As Bitcoin (BTC) gains traction, Norway’s central bank investment arm, NBIM, has increased its exposure. The firm holds $500 million in MicroStrategy shares and boosted its indirect Bitcoin investments.

This reflects a broader trend of corporations and nations diversifying into Bitcoin, signaling its growing role in global financial systems.

Norges Bank Bets on Bitcoin

Norges Bank Investment Management (NBIM), the investment arm of Norway’s central bank, has revealed that it holds MicroStrategy shares valued at $500 million.

The growing adoption of Bitcoin by corporations and Nation-states is increasingly reflected in financial instruments that do not necessarily have direct exposure to the digital asset.

NBIM’s indirect Bitcoin holdings expanded from 2,446 BTC on June 30, 2024, to 3,821 BTC, at the time of writing.

“It is important to highlight that this exposure likely derives from rule-based sector weighting rather than a deliberate choice to prioritize BTC exposure. NBIM’s indirect exposure is one of the strongest examples of how BTC is slipping into any well-diversified portfolio, and the growth is a testament to the market maturing and BTC ending up in any well-diversified portfolio, intended or not,” Vetle Lunde, Head of Research at K33 Research, said.

Other Crypto Ventures

Analysts had anticipated that NBIM’s exposure to MicroStrategy would be significantly lower following its 21/21 plan.

However, Norges Bank invests in more than just MicroStrategy in cryptocurrencies.

Block (SQ) saw a significant reduction in exposure, dropping from 1.28% to 0.03%, leading to a decline of 100.21 BTC in indirect holdings.

Tesla (TSLA) and Nexon both contributed to NBIM’s growing BTC exposure, with TSLA’s impact increasing by 14.58 BTC and Nexon’s doubling from 3.78 BTC to 7.55 BTC. MercadoLibre also showed moderate growth, adding 0.45 BTC to NBIM’s exposure.

One of the most significant shifts came from Riot Platforms. In this case, NBIM’s allocation rose from 0% to 0.44%, resulting in a new 76.69 BTC exposure. Similarly, Metaplanet’s inclusion at 0.55% contributed an additional 9.69 BTC.

By the end of 2024, NBIM’s total indirect BTC exposure in USD terms had surged from $23 million in 2020 to $356 million. The Norwegian per capita exposure reaching 68,837 sats ($64).

Central Bank To Boost Crypto Investments

Governments and central banks may increase their Bitcoin holdings in 2025, according to Fidelity . The firm suggests that Nation-states could become significant investors in the cryptocurrency.

While some countries already hold Bitcoin, these holdings have mostly come from government seizures and legal recoveries, with regulations often requiring their sale rather than allowing them to be added to national treasuries. However, Fidelity’s Matt Hogan predicts that 2025 will bring greater acceptance and adoption.

“With rising concerns over inflation, fiscal deficits, and currency devaluation, avoiding Bitcoin investments may soon pose a greater risk for nations than adopting them,” Hogan noted.

The analysts also point out that President-elect Donald Trump and Senator Cynthia Lummis support a U.S. strategic Bitcoin reserve, however, it remains unclear if this idea will materialize in 2025:

“If countries decide to accumulate Bitcoin, they are likely to do so discreetly to avoid influencing the market. Hogan explains that no nation has an incentive to announce such plans, as doing so could drive up prices, making covert accumulation the more likely approach.”