Saudi Central Bank, URS Take Indirect Bet on Bitcoin Via Strategy Exposure

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.