MicroStrategy’s Q2 2024 results reveal that the Swiss and Norwegian central banks have purchased MSTR shares, indirectly gaining exposure to Bitcoin. Could this move signal a strategic shift toward cryptocurrencies, or is it simply a traditional investment strategy?
Bitcoin joins the Swiss Franc and Norwegian Krone reserves
At The Bitcoin Conference 2024 in Nashville, several political figures including former President and presidential candidate Donald Trump, Wyoming Senator Cynthia Lummis, and presidential candidate Robert F. Kennedy Jr. took the stage to share their visions for Bitcoin's future in the United States.
Each of these personalities has proposed, in their own way, the idea of creating a strategic reserve in Bitcoin to help the United States government repay its debts.
🗳️ Discover the details of the “Bitcoin Act”, Cynthia Lummis’ bill aimed at creating a strategic reserve of one million BTC
MicroStrategy's Q2 2024 Financial Results Reveal 2 Influential Central Banks Bought MSTR Stock, Indirectly Holding Bitcoin.
According to the results, Swiss National Bank (SNB) reportedly owns 466,000 MicroStrategy sharesworth $60.5 million.
For his part, Norges Bank, Norway's central bank, reportedly owns 1,578,900 shares of MicroStrategyworth $205 million.
Given that MicroStrategy holds 226,500 BTC in treasury, The SNB indirectly owns 544 BTC, while Norges Bank holds 2,854, or nearly 3,400 Bitcoins between them..
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Are Central Banks Bullish on Bitcoin and MicroStrategy?
Historically, Switzerland has always been favorable to Bitcoin and cryptocurrencies. Indeed, the Swiss, more liberal than their neighboring countries, have seen several initiatives emerge in favor of the adoption of Bitcoin. For example, the city of Lugano regularly hosts events dedicated to Bitcoin, and citizens can even pay their taxes in Bitcoin or USDT stablecoin.
In contrast, Norway has so far adopted a stricter approach.. It recently passed a law requiring Bitcoin mining companies to officially register with municipalities, which now have the power to refuse their installation simply on the grounds that they are mining.
📰 Also read in the news – Bitcoin miners’ revenues at their lowest in a year – Where is the industry 4 months after the halving?
However, Some Internet users point out that these purchases are part of a physical index replication strategy and that these two central banks have acquired MSTR shares by default.rather than as a deliberate investment to gain exposure to Bitcoin or MicroStrategy.
While this is true, the fact remains that if these institutions had judged MSTR stock to be a bad investment, due to its involvement in Bitcoin or for any other reason, they would not have made these purchases.
Furthermore, we could move forward The fact that BTC is quietly slipping into an investment diversification strategy is also a sign of Bitcoin adoption.
Institutions that hold MSTR shares include the most influential players in traditional finance, such as Vanguard, BlackRock, Morgan Stanley, Goldman Sachs, JP Morgan, UBS, Bank of America, Deutsche Bank, Wells Fargo and Credit Suisse, Barclays.
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First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I have no choice but to share my knowledge and transmit the passion I have for the blockchain universe. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
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