The $1.7 trillion sovereign wealth fund of Norway, which is under the management of Norges Bank Investment Management, has upped its investment in MicroStrategy.
As of June 30, 2024, sources state that MicroStrategy had received $217 million from the sovereign wealth fund of Norway. therefore granting it a 0.89% stake in the business.
The Bitcoin Gambit of Norway Bank: 2,446 BTC and Counting
In the last year, Norges Bank, which began investing in MicroStrategy in 2008, has increased its shareholding thrice. At MicroStrategy, Saylor still holds the majority of the authority with 52.9% of the vote, compared to the fund’s 0.45% of voting rights.
Bitcoin is not being bet on by Norges Bank. It is a wager on MicroStrategy, a company that also happens to possess Bitcoin. Investing in businesses whose treasuries are directly exposed to Bitcoin is the aim.
Norway is not endorsing Bitcoin itself, even if it is now indirectly exposed to the cryptocurrency. The heightened interest in MicroStrategy by Norges Bank is a component of a larger investment diversification plan.
Velte Lunde, senior analyst at K33Research, outlined the shift in the fund’s cryptocurrency exposure during the first half of 2024. During this time, the fund has raised its holdings in Bitcoin by 62% by purchasing more shares in cryptocurrency-related businesses like Coinbase, MarathonStrategy, Block Inc., and Marathon Digital.
Lunde says the gain is probably due to predetermined algo-based sector weighting and risk diversification.”
Investing in successful businesses is the aim, not arguing that Bitcoin is the currency of the future.
Currently holding 2,446 Bitcoin, valued at roughly $142.9 million, is Norway’s investment fund. This equates to roughly $27 for each of Norway’s 5.5 million residents.
Norway’s crypto mining strategy
The relationship between Bitcoin and Norway is nuanced. On the one hand, MicroStrategy’s Bitcoin assets help the nation’s wealth fund. However, Norway’s government has been resisting attempts to mine Bitcoins.
Legislators in Norway are worried that excessive energy consumption and environmental damage are resulting from Bitcoin mining. However, the cryptocurrency community is calling for the government to reverse this decision because of concerns raised by this move.
As a result, regulations limiting the amount of electricity these mining activities can consume have been developed.
