Saudi Central Bank, URS Take Indirect Bet on Bitcoin Via Strategy Exposure
Highlights
- The Saudi Central Bank has acquired 25,656 shares of Strategy, which has substantial Bitcoin holdings.
- Strategy has expanded its Bitcoin treasury to 568,840 BTC, worth over $68 billion.
- The Saudi Central Bank's investment in Strategy reflects a broader trend among central banks to diversify traditional reserves.
- Utah Retirement Systems also increased its MSTR holdings by 184% in the first quarter of this year.
In a surprising revelation, the Saudi Central Bank recently disclosed that it holds substantial shares in Michael Saylor’s Strategy, formerly known as MicroStrategy. Meanwhile, Utah Retirement Systems (URS) has also increased its MSTR holdings.
As the largest institutional investor in Bitcoin, Strategy has made it its primary treasury reserve asset in recent years. Therefore, by investing in Strategy, the Saudi Central Bank is also likely to have substantial exposure to crypto assets like Bitcoin. As per the media reports, the Saudi Central Bank’s SEC 13F filing shows that it now holds 25,656 shares of MicroStrategy Inc., now rebranded as “Strategy”.
MicroStrategy’s Bitcoin Bet
Strategy holds 568,840 Bitcoin as per the latest report by CoinGape Media, worth close to $68 billion at the current market price.
On social media, the crypto community hailed the Saudi Central Bank’s move as a subtle but significant pivot of the central bank toward cryptocurrency. Some even speculated that the news is a vote of confidence on Strategy’s Bitcoin Bet and could push other large companies to follow suit.
URS also boosted its MSTR holdings by 184% in the first quarter of this year. The pension fund now owns 25,287 shares worth over $10 million. The MicroStrategy stock (MSTR) has yet to reflect the news, as the stock price is down at the open of today’s market, currently trading at around $393.
The Strategy stock has seen volatility over the past five days as analysts flagged broader implications for institutional crypto adoption. The use of borrowed funds for the purchase of Bitcoin has also raised eyebrows, with critics like Peter Schiff mocking Michael Saylor’s all-in bet on Bitcoin.
Saudi Central Bank’s Indirect Crypto Exposure
Globally, the central banks of the majority of countries have traditionally invested heavily in Gold or U.S. dollars as a hedge for long-term value. However, things are changing gradually as some banks start to prioritise growth as well. As per the publicly available information, around a dozen countries now hold Bitcoin in their treasury and central bank reserves, including the United States, the United Kingdom, El Salvador, Iran, and Bhutan.
Earlier, Norway’s sovereign wealth fund had also followed a similar strategy by enhancing its investment in companies like MicroStrategy, Coinbase, and Metaplanet, which have substantial exposure to the crypto market. The Saudi Central Bank, formerly called the Saudi Arabian Monetary Authority (SAMA), is now among the few central banks to have exposure to Bitcoin.
- Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle
- Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
