Capital Group, a storied mutual fund manager with a 94-year history, has successfully expanded its investment in Bitcoin-related stocks from an initial $1 billion to over $6 billion. This impressive growth has been spearheaded by Mark Casey, a portfolio manager at the firm for 25 years, who has become a vocal proponent of Bitcoin. Casey’s investment philosophy is influenced by renowned investors Benjamin Graham and Warren Buffett, leading him to view Bitcoin as an intriguing and innovative financial asset. During a recent podcast interview with venture capital firm Andreessen Horowitz, he expressed his deep appreciation for Bitcoin, calling it “one of the coolest things that has ever been created by people.”
Over the last four years, Capital Group has strategically increased its Bitcoin exposure primarily by investing in companies dubbed ‘Bitcoin treasury firms.’ These firms buy and hold Bitcoin on their balance sheets as part of their operational strategies. Notably, Capital Group’s largest investment is in Strategy—formerly known as MicroStrategy—a software company that has transformed into a significant Bitcoin vehicle under the leadership of founder Michael Saylor. In 2021, the firm acquired a 12.3% stake in Strategy for more than $500 million. This stake, which now stands at approximately 7.89% due to share dilution and portfolio adjustments, is valued at around $6.2 billion, thanks to an astounding 2,200% rise in Strategy’s stock price over the past five years.
Casey explained that his team evaluates these Bitcoin treasury companies similarly to how they assess firms involved in traditional commodities such as gold or oil, framing Bitcoin in the context of a commodity rather than merely a speculative asset. Alongside its investment in Strategy, Capital Group also holds a 5% stake in Metaplanet, a hotel operator that has pivoted to acquire Bitcoin, as well as shares in Mara Holdings, a mining company.
As corporate interest in Bitcoin continues to rise, recent reports indicate that corporate Bitcoin treasuries now collectively hold over 1 million BTC, valued at over $117 billion. Strategy remains the largest holder with 636,505 BTC, while Mara Holdings follows with over 52,000 BTC. Emerging companies like XXI and Bitcoin Standard Treasury are also making substantial strides in Bitcoin accumulation, while firms such as Metaplanet and Semler Scientific have set ambitious targets to acquire 210,000 BTC and 105,000 BTC respectively by 2027.
The growing acceptance and strategic investment in Bitcoin by established firms like Capital Group indicates a significant shift in how traditional finance perceives and engages with cryptocurrencies, highlighting the increasing legitimacy of Bitcoin as a viable asset class.
