United

2024

Bitcoin

An analyst has claimed that the Norwegian sovereign wealth fund’s significant increase in indirect Bitcoin exposure, now valued at over $144 million, may not have been a deliberate strategy.
“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 exposure,” K33 Research senior analyst Vetle Lunde explained in an Aug. 14 X <a href="https://x.com/VetleLunde/status/1823634527157162282" target="_blank" rel="noopener nofollow">post</a>&nbsp;following the release of the Government Pension Fund of Norway’s first half of 2024 financial report.
<h3 data-ct-non-breakable="true" id="deliberate-bitcoin-exposure-would-be-more-obvious">Deliberate Bitcoin exposure would be more obvious</h3>
Lunde explained that if it were a <a href="https://cointelegraph.com/news/over-50-us-hedge-funds-exposure-bitcoin-btc-stocks">deliberate move to expose the fund</a> to more Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>), there&nbsp;would be more “evidence of direct exposure initiatives.” Through changes in share allocations and new purchases, the fund increased its indirect Bitcoin ownership by 160.7% since December 2023, now holding 2,446 Bitcoin valued at around $144.8 million at the time of publication.
“It perfectly illustrates how Bitcoin is maturing as an asset and getting woven into any well-diversified portfolio,” he claimed.
Lunde pointed out that the increase in indirect exposure came from expanding its shareholdings in companies that hold Bitcoin. The fund increased its shareholdings&nbsp;<a href="https://cointelegraph.com/news/michael-saylor-ups-bitcoin-price-forecast-13-million-mega-bullish-keynote-bitcoin-2024">of Michael Saylor’s MicroStrategy</a> to account for 0.89% of its total portfolio.
<h3 data-ct-non-breakable="true" id="expands-investments-and-starts-new-stake-in-marathon-digital">Expands investments and starts new stake in Marathon Digital</h3>
Additionally, it increased its stake in cryptocurrency exchange Coinbase and Jack Dorsey’s fintech firm Block (formerly Square) and also started investing in the <a href="https://cointelegraph.com/news/marathon-digital-made-in-usa-bitcoin-blocks">Bitcoin mining firm Marathon Digital</a>.
As a result, each Norwegian essentially indirectly owns $27 worth of Bitcoin, Lunde added:
<blockquote data-ct-non-breakable="true">
 “The Norwegian indirect sat per capita exposure stood at 44,476 sats ($27) by the end of H1 2024.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/norway-data-center-legislation-scrutiny-bitcoin-miners">Norway passes data center legislation signaling more scrutiny for Bitcoin miners</a>
On Aug. 16, Cointelegraph reported that the <a href="https://cointelegraph.com/news/south-korea-pension-fund-nps-buys-microstrategy-shares">third-largest public pension fund</a> in the world, South Korea’s National Pension Service, just bought nearly $34 million worth of shares in MicroStrategy.
The fund purchased 24,500 MicroStrategy shares for a price of $33.75 million, an Aug. 13 <a href="https://www.sec.gov/Archives/edgar/data/1608046/000160804624000005/xslForm13F_X02/20242q.xml" target="_blank" rel="noopener nofollow">filing</a> with the United States Securities and Exchange Commission shows.
Magazine: <a href="https://cointelegraph.com/magazine/ai-more-power-hungry-bitcoin-profits-pose-risks-bitcoin-miners/">AI may already use more power than Bitcoin — and it threatens Bitcoin mining</a>

World’s largest sovereign wealth fund Bitcoin exposure not ‘intentional’

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Cointelegraph

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