Warren Buffett’s critical stance on Bitcoin has not deterred some within the finance community from embracing the cryptocurrency, particularly at Capital Group, a historic mutual fund manager with a robust track record. Under the direction of Mark Casey, a mutual fund manager who identifies as a follower of Buffett, the firm has made significant investments in Bitcoin-related stocks, totaling approximately $1 billion in recent years.
Despite Buffett’s skepticism, Casey is a notable advocate for Bitcoin, expressing admiration for it during his appearance on the “In The Vault” podcast hosted by Andreessen Horowitz last year. “I just love Bitcoin,” he declared, elaborating that he finds it “so interesting” and considers it “one of the coolest things that’s ever been created by people.”
The investment philosophy at Capital Group, as articulated by Casey and his team, posits that Bitcoin could eventually surpass gold as the prime store of value. With gold’s market capitalization nearing $25 trillion in stark contrast to Bitcoin’s approximately $2.3 trillion, they see substantial growth potential for the digital asset.
Casey’s journey into Bitcoin began after a pivotal meeting in 2013 with Wences Cesares, an early promoter of Bitcoin and founder of Xapo Bank. At that time, Casey lacked a practical avenue to invest in Bitcoin until the digital currency gained traction and corporate strategies like MicroStrategy’s Bitcoin treasury initiative emerged in 2020.
In a notable move in 2021, Capital Group acquired a 12.2% stake in MicroStrategy for around $500 million, as revealed in a filing with the Securities and Exchange Commission. This strategic investment aligns with their commitment to Bitcoin and its potential appreciation.
In addition to MicroStrategy, Casey and his colleagues at Capital Group have also invested in Metaplanet, a Japanese hospitality firm that transitioned into a Bitcoin treasury firm last year. This investment, for which the exact monetary figure remains undisclosed, has reportedly seen its stock rise by as much as 6000% since its pivot.
The firm also holds shares in Bitcoin miner MARA Holdings, further exemplifying their commitment to the cryptocurrency sector. Addressing concerns regarding the valuation of firms with Bitcoin treasuries, Casey clarified, “We view Bitcoin as a commodity,” comparing their evaluation approach to that of companies engaged in traditional commodities like gold and oil.
The bold moves by Casey and Capital Group illustrate a growing trend within the finance sector, where even traditional investment houses are reevaluating their attitudes toward cryptocurrencies in light of potential growth opportunities.
