Vanguard Bets Big on Bitcoin Through Leveraged Stock Play

Vanguard Group, one of the largest asset managers in the world, has increased its holdings in Strategy (formerly MicroStrategy) by $50 million to nearly $1 billion. This brings Vanguard's total position to around 10.5 million shares.

This is a significant bet on Bitcoin, as Strategy remains the single largest corporate holder of Bitcoin and has converted its balance sheet into what effectively amounts to a leveraged Bitcoin vehicle.

Vanguard was initially hesitant to offer spot Bitcoin ETFs on its brokerage platform, but now its passive funds hold nearly $1 billion tied to Bitcoin's price trajectory through this stock. This means that every major index fund that includes Strategy becomes a fractional Bitcoin holder.

The outcome of Vanguard's strategy is the same as if it had invested directly in Bitcoin: gains and losses would be amplified by its leveraged position.