Capital Group, a mutual fund giant with a legacy spanning 94 years and recognized for its cautious investment strategies, has successfully escalated its $1 billion stake in Bitcoin-related equities to over $6 billion.
Mark Casey, a seasoned portfolio manager with two and a half decades at Capital Group, spearheaded the firm’s venture into Bitcoin. According to a recent report from The Wall Street Journal, Casey’s investment philosophy is influenced by renowned investors Benjamin Graham and Warren Buffett, leading him to become an enthusiastic supporter of Bitcoin (BTC).
“I find Bitcoin fascinating; it’s one of the most remarkable innovations created by humanity,” Casey expressed during his podcast discussion with venture capital firm Andreessen Horowitz. He described it as “one of the coolest things that has ever been created by people,” as reported by WSJ.
Over the last four years, Capital Group has primarily expanded its exposure through investments in what are known as Bitcoin treasury companies—public entities that acquire and retain Bitcoin on their balance sheets.
Top 15 Bitcoin treasury firms. Source: BitcoinTreasuries.NET
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The Major Bet on Strategy
A significant portion of Capital Group’s investments is directed towards Strategy (previously MicroStrategy), which was transformed into a vehicle for holding Bitcoin under founder Michael Saylor’s leadership.
In 2021, Capital Group secured a 12.3% share in Strategy for upwards of $500 million. Although this stake has since been diluted to 7.89% due to new share issuances and some reductions in holdings, it now holds an estimated value of around $6.2 billion following an impressive stock increase exceeding 2,200% over five years.
“We evaluate these companies similarly to how we would assess those involved in commodities like gold or oil,” said Casey regarding their analytical approach toward these firms while speaking with WSJ about their perspective on bitcoin being treated as a commodity.
Additonally, Capital Group’s exposure includes owning 5% of Japan-based Metaplanet—a hotel operator that transitioned into holding Bitcoins—and shares from mining enterprise Mara Holdings.
Related: The current state of consolidation within bitcoin markets as treasuries eye altcoins: Insights from Novogratz
Total Corporate Holdings Exceeding One Million BTC
Citing Cointelegraph data via BitcoinTreasuries.NET reveals that corporate entities now collectively hold more than one million BTC valued at over $117 billion.
Saylor’s Strategy continues to lead this trend with ownership surpassing 636,505 BTC followed closely by MARA Holdings which possesses more than 52 thousand BTC. Emerging players such as XXI and the newly established firm called ‘Bitcoin Standard Treasury’ are rapidly advancing within this space while other notable names like Metaplanet along with Bullish and Coinbase complete the top ten list.
Laying out future ambitions—companies including Metaplanet alongside Semler Scientific have disclosed aggressive acquisition goals targeting approximately 210 thousand BTC and105 thousand BTC respectively before reaching the year 2027.
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