When you buy through affiliate links in our content, we may earn a commission at no extra cost to you. Learn 
Norway’s $1.7 trillion sovereign wealth fund, managed by Norges Bank Investment Management, has increased its stake in MicroStrategy.
As of June 30, 2024, reports show that Norway’s sovereign wealth fund had put $217 million into MicroStrategy. Thereby giving it a 0.89% ownership in the company.
Norges Bank’s Bitcoin Gambit: 2,446 BTC and Counting
Norges Bank started investing in MicroStrategy in 2008 and has tripled its shares over the past year. However, Saylor still has most of the control with 52.9% voting power at MicroStrategy, while the fund only has 0.45% voting rights.
Norges Bank isn’t betting on Bitcoin. It’s betting on MicroStrategy, which happens to hold Bitcoin. The goal is to invest in companies that have direct exposure to Bitcoin via their treasuries.
Although Norway now has some indirect exposure to Bitcoin, this doesn’t mean the country is backing the cryptocurrency itself. Norges Bank’s increased interest in MicroStrategy is part of a wider strategy to diversify its investments.
K33Research senior analyst Velte Lunde explained how the fund’s crypto exposure has changed in the first half of 2024. By buying more shares in crypto-related companies, such as Coinbase, MarathonStrategy, Block Inc., and Marathon Digital, the fund has increased its stake in Bitcoin by 62% during this period.
Lunde stated that the “growth likely originates from pre-determined algo-based sector weighting and risk diversification.”
The Norwegian sovereign wealth fund (NBIM) indirectly owns 2,446 BTC, an increase of 938 BTC from December 31, 2023.
The growth likely originates from pre-determined algo-based sector weighting and risk diversification. It's unlikely to stem from an intentional choice to amass… pic.twitter.com/8HBIbemgNU
— Vetle Lunde (@VetleLunde) August 14, 2024
The goal is to invest in companies that are doing well, not to take a stand on whether Bitcoin is the future of money.
Norway’s investment fund now holds 2,446 Bitcoin, worth about $142.9 million. For each of Norway’s 5.5 million people, this equals roughly $27.
Norway’s Approach to Crypto Mining
Norway’s relationship with Bitcoin is complicated. On the one hand, the country’s wealth fund benefits from MicroStrategy’s Bitcoin holdings. On the other hand, Norway’s government has been pushing back against Bitcoin mining.
Norway’s lawmakers are concerned that Bitcoin mining is using too much energy and hurting the environment. But this move has elicited concerns from the crypto community with calls for the government to rescind its decision.
In response, they have been working on policies to limit how much electricity these mining operations can use.
For now, every Norwegian has a small stake in Bitcoin, but that doesn’t mean the country is ready to embrace the cryptocurrency fully. Instead, it’s all part of a bigger plan to balance risk and reward in its $1.7 trillion sovereign wealth fund.
