Investment giant Vanguard has become the largest shareholder in Strategy Inc., the most prominent corporate holder of Bitcoin.
Vanguard Group, the world’s second-largest asset manager, became the biggest institutional shareholder in Strategy Inc. (aka MicroStrategy), despite the firm’s repeated warnings against investing in cryptocurrencies.
For context, the $10 trillion asset manager has acquired more than 20 million shares of Strategy, giving it nearly an 8% stake in the company’s Class A stock. Notably, the stake is worth approximately $9.26 billion.
Meanwhile, the position was not the result of a direct bet on Bitcoin but an outcome of Vanguard’s passive index-tracking strategy.
Bitcoin Exposure via Passive Investing
Strategy, under the leadership of Michael Saylor, has transitioned from a software company into a corporate vault for Bitcoin. With more than 601,500 BTC on its balance sheet, the company has become the most prominent public Bitcoin holder.
As Strategy gained market relevance, it entered into major equity indices. This inclusion forced passive funds, such as those managed by Vanguard, to purchase shares regardless of the company’s crypto focus.
Consequently, Vanguard, known for promoting conservative asset allocations, now holds one of the largest indirect Bitcoin exposures in the institutional world.
Clash Between Philosophy and Portfolio
The development highlights a widening gap between Vanguard’s philosophy and the reality of its portfolio. For years, the firm has criticized Bitcoin for lacking intrinsic value and dismissed it as a speculative asset. Yet, its indexing model has pulled Bitcoin exposure into its funds without a change in official stance.
Critics argue this reflects a deeper flaw in modern asset management. In a public post, Matthew Sigel, Head of Digital Assets Research at Vaneck, described Vanguard’s stake as “institutional dementia.” He cited the contradiction between the firm’s anti-crypto rhetoric and its passive exposure.
Vanguard: Bitcoin is immature and has no value.
Also Vanguard: Buys 20M shares of MSTR, becomes top backer of Bitcoin’s loudest bull.
Indexing into $9B of what you openly mock isn't strategy.
It’s institutional dementia. pic.twitter.com/UdPdHoy3Uv— matthew sigel, recovering CFA (@matthew_sigel) July 14, 2025
The Cost of Automation
This case underscores how automation in asset allocation can override an institution’s stated investment principles. Passive investing was once praised for its simplicity and efficiency. However, it can inadvertently expose firms to volatile or controversial assets simply due to index composition.
Meanwhile, Vanguard has not issued a statement changing its position on crypto assets. Yet, the Strategy stake has reignited debates around whether firms can remain ideologically consistent while managing trillions in automated portfolios.
With institutional exposure to crypto assets quietly growing, Vanguard’s Strategy stake may be a signal of what’s to come: a financial ecosystem where crypto finds its way into portfolios not by conviction, but by default.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
