Capital Group’s Growth in Bitcoin-Related Stocks
Capital Group, a mutual fund giant with a history spanning 94 years and a reputation for a conservative investment strategy, has successfully elevated its $1 billion position in Bitcoin-related stocks to over $6 billion.
Mark Casey, a portfolio manager with 25 years of experience at Capital Group, has been at the forefront of the firm’s venture into Bitcoin. Casey, whose investment philosophy is influenced by legends like Benjamin Graham and Warren Buffett, has become a proponent of Bitcoin (BTC), as noted in a recent report by The Wall Street Journal.
“I just love Bitcoin, I just think it is so interesting,” remarked Casey during a podcast interview with the venture capital firm Andreessen Horowitz. He referred to Bitcoin as “one of the coolest things that has ever been created by people,” according to the WSJ report.
Over the last four years, Capital Group has primarily expanded its Bitcoin exposure by investing in so-called Bitcoin treasury companies, which are public firms that accumulate and retain Bitcoin on their balance sheets.
Key Holdings
One of Capital Group’s most significant investments is in Strategy (formerly known as MicroStrategy), a software company transformed into a Bitcoin-focused enterprise under the leadership of founder Michael Saylor.
In 2021, Capital Group purchased a 12.3% stake in Strategy for over $500 million. Although that stake has been diluted to 7.89% due to share issuance and some trimming, it now holds a value of approximately $6.2 billion, following a staggering 2,200% increase in Strategy’s stock over the past five years.
Casey explained that he and his team evaluate these companies in a manner similar to how they assess firms associated with commodities like gold or oil. “We view Bitcoin as a commodity,” he stated to the WSJ.
Other Investments
In addition to this, Capital Group’s Bitcoin exposure features a 5% stake in Metaplanet, a hotel operator that has transitioned into a Bitcoin holder, along with shares in mining company Mara Holdings.
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As reported, corporate Bitcoin treasuries currently possess over 1 million BTC valued at more than $117 billion, according to BitcoinTreasuries.NET.
Michael Saylor’s Strategy continues to be the largest holder with 636,505 BTC, followed closely by MARA Holdings with over 52,000 BTC. New entrants such as XXI and Bitcoin Standard Treasury are swiftly making strides, while firms like Metaplanet, Bullish, and Coinbase complete the top 10.
Future Targets
Looking ahead, companies such as Metaplanet and Semler Scientific have set ambitious accumulation goals, aiming to acquire 210,000 BTC and 105,000 BTC by 2027, respectively.
