Vanguard Group, a $10 trillion asset management giant, has become the largest shareholder in Strategy (formerly MicroStrategy).

The position highlights a paradoxical shift for the asset manager, which has historically expressed skepticism toward Bitcoin (BTC) and other digital assets.

Why Vanguard Invested in MSTR Despite Bitcoin Criticism 

According to Bloomberg, Vanguard holds over 20 million shares of Strategy, representing nearly 8% of the company’s outstanding Class A common stock (MSTR). This stake, likely surpassing Capital Group Cos., positions Vanguard as the top shareholder. It is worth noting that the investment does not signal support for crypto products.

“As investors have continued to flock to its index-tracking funds in recent years — swelling assets under management to more than $10 trillion — it’s become the top shareholder of roughly 400 companies in the S&P 500. Strategy isn’t currently part of the benchmark, though it recently was included in the widely followed Nasdaq 100 gauge,” Bloomberg wrote.

Still, the irony of the asset managers’ stake in MSTR stock has not gone unnoticed. Vanguard has long maintained a critical stance on Bitcoin, even labeling the largest cryptocurrency an ‘immature asset class.’ In 2024, the firm declined to offer Bitcoin exchange-traded funds (ETFs) on its platform, citing volatility concerns.

In contrast, under Michael Saylor’s leadership, Strategy has gained prominence as the world’s largest corporate holder of Bitcoin. Data from SaylorTracker revealed that the company holds 601,550 Bitcoins, worth $70.81 billion (2.86% of the total Bitcoin supply). 

Moreover, as Bitcoin’s value has surged, so has the Strategy’s MSTR stock, making it a key beneficiary of the cryptocurrency’s rising market demand. Since launching the Bitcoin treasury strategy around five years ago, MSTR has appreciated by over 3,500%.

“Vanguard: Bitcoin is immature and has no value. Also, Vanguard: Buys 20 million shares of MSTR, becomes top backer of Bitcoin’s loudest bull. Indexing into $9 billion of what you openly mock isn’t strategy. It’s institutional dementia,” VanEck’s Head of digital assets research, Matthew Sigel, stated.

Bloomberg’s senior ETF analyst Eric Balchunas suggested that this turn of events was ‘proof that God has a sense of humor.’

“Vanguard chose this life. When you have an index fund, you have to own all the stocks, for better or worse, and that includes stocks that you may not like or approve of personally,” he said.

Meanwhile, this development is part of a broader trend of institutional involvement in crypto-related assets. Previously, BeInCrypto reported that in Q1 2025, 14 US states revealed a $632 million stake in Strategy’s MSTR stock.

It’s not just MSTR; there’s also a rising demand for other crypto stocks. This is evident from the Czech National Bank’s acquisition of Coinbase shares worth $18 million.

However, some analysts have warned of a potential institutional bubble, raising questions about the sustainability of Bitcoin investment vehicles.

“Don’t forget that the premiums will one day collapse to discounts, as the corporate treasury structures are an imperfect vessel to hold $BTC (just like GBTC 1.0) – a bubble is amazing, but not sustainable,” Placeholder partner, Chris Burniske, posted.

Recently, BeInCrypto highlighted concerns about Strategy’s Bitcoin-only focus. Analysts warn that the company’s dependence on Bitcoin and its lack of diversification make it vulnerable to market fluctuations, raising liquidation risks. 

Furthermore,  the company’s substantial Bitcoin holdings, funded by convertible debt, could lead to significant pressure on its balance sheet if Bitcoin’s price drops below its average purchase price.