Norway’s wealth fund has become an accidentally large holder of bitcoin by proxy

While some companies, like MicroStrategy and MARA Holdings, continue their bitcoin stockpiling spree, some countries, like Norway, have another form of exposure to the asset.

The country’s Government Pension Fund Global — the world’s largest sovereign wealth fund — is invested in bitcoin by proxy, with millions allocated to the most significant corporate bitcoin holders. 

And slowly but surely, the country now “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,” according to K33 head of research Vetle Lunde. 

Experts said that Norway’s investment in MicroStrategy and other bitcoin-heavy companies highlights a growing institutional interest in digital assets and underscores the significant regulatory barriers that bitcoin still faces.

“Direct investment in bitcoin by entities like Norway’s fund is hindered by complex regulations, leading to a preference for proxy investments like MicroStrategy,” Alan Orwick, cofounder of Quai Network, said.

Orwick added that this is akin to investing in strategies like bitcoin ETFs and crypto mining stocks, which correlate with bitcoin’s price but provide additional revenue streams, offering a buffer against market swings.

In addition, tax considerations further complicate direct bitcoin ownership.

“In contrast, using proxies allows these institutions to navigate bitcoin exposure under the guise of traditional securities, simplifying tax reporting,” he said. 

This comes at a time when governments around the world are adding to their bitcoin reserve or talking about creating a bitcoin reserve. 

“We’re witnessing the early stages of a geopolitical race to build bitcoin stockpiles — a modern digital gold rush,” Arman Meguerian, founder and CEO of Timestamp, said. “For straightforward market exposure, MicroStrategy, Coinbase, and MARA provide institutions and governments with an easy on-ramp to bitcoin without direct custody.”

Norway’s fund currently has $514 million in MicroStrategy in its portfolio, $46 million in MARA Holdings, $4.4 million in Metaplanet, $616 million in Block, $11.4 million in Riot Blockchain, and a mix of $530 million in Coinbase stock and $2.4 million in its corporate bonds. It also holds $14 billion in Tesla, which is a 1.1% stake in the car company that just made a ton of its Q4 revenue on bitcoin.

That said, it reduced its ownership stake in MicroStrategy during the second half of 2024, so Norway’s fund managers may not be bullish on bitcoin after all.

Update (January 31, 5:00 p.m. ET): adjusted headline and copy to reflect that Norway has reduced its stake in MicroStrategy.

Yaël Bizouati-Kennedy is a financial journalist who’s written for Dow Jones, The Financial Times Group, and Business Insider