Vanguard Becomes Largest Institutional Holder of Bitcoin-Heavy MSTR

Vanguard, the $10 trillion asset management giant, has quietly become the largest institutional shareholder of MicroStrategy (MSTR), the firm best known for holding massive amounts of Bitcoin. According to Bloomberg, Vanguard now holds over 20 million shares—more than 8% of MSTR’s total—surpassing Capital Group and valuing its stake at around $9.26 billion.

This development is especially ironic given Vanguard’s anti-crypto stance. The firm has consistently denied retail clients access to spot Bitcoin ETFs, including rejecting BlackRock’s popular iShares Bitcoin Trust (IBIT), despite its rapid growth past $80 billion in assets. Even with the appointment of Salim Ramji, former BlackRock crypto lead, as CEO in 2024, Vanguard’s position has not shifted. Ramji has emphasized the importance of consistency in the firm’s offerings.

MSTR, led by Michael Saylor, functions as a de facto Bitcoin holding company, owning over 600,000 BTC—worth approximately $72 billion. Before the approval of spot Bitcoin ETFs in the U.S., MSTR shares were a common indirect route for institutional and retail Bitcoin exposure.

Vanguard’s exposure to MSTR comes not from active investment in Bitcoin, but through passive index funds like the Total Stock Market Index Fund (VITSX), Extended Market Index Fund (VIEIX), and Growth ETF (VUG). These funds track major indices and automatically include qualifying stocks—even those with heavy crypto exposure.

The contradiction hasn’t gone unnoticed. Bloomberg analyst Eric Balchunas remarked, “God has a sense of humor,” noting the inevitability of index fund ownership. Meanwhile, VanEck’s Matthew Sigel criticized the move as “institutional dementia,” calling out Vanguard for indexing into a firm it appears to ideologically oppose.

Despite its indirect Bitcoin exposure, Vanguard’s official crypto skepticism remains firm.