Capital Group, a 94-year-old mutual fund powerhouse known for its conservative investment approach, has increased its $1 billion position in Bitcoin-related stocks to over $6 billion.
Mark Casey, a 25-year portfolio manager at Capital Group, led the company’s transition to Bitcoin. Describing the investment style shaped by Benjamin Graham and Warren Buffett, Casey has become a Bitcoin (BTC) advocate, according to a Sunday report in the Wall Street Journal.
“I love Bitcoin, I think it’s very interesting,” Casey said in a podcast interview with venture company Andreesen Horowitz. According to the WSJ report, he called Bitcoin “one of the coolest things I’ve ever created.”
For the past four years, Capital Group has built exposures primarily through investments in so-called Bitcoin finance companies, public companies that accumulate and hold Bitcoin on their balance sheets.
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Capital Group’s biggest bitcoin bet is strategy
The most notable hold for Capital Group is the strategy (formerly MicroStrategy) in which the software company transformed into a Bitcoin vehicle by founder Michael Saylor.
In 2021, Capital Group acquired a 12.3% stake in the strategy for over $500 million. The stock, diluted to 7.89% due to stock issuance and partial trimming, is worth around $6.2 billion as strategic stocks have skyrocketed over 2,200% over five years.
Casey said he and his colleagues analyse these companies in the same way they rate companies involved in products such as gold and oil. “We consider Bitcoin to be a commodity,” he told WSJ.
Capital Group’s Bitcoin exposure also includes a 5% stake in Japan-based Metaplanet, a hotel operator-turned-bitcoin holder, and a shares in mining company Mara Holdings.
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Corporate Bitcoin’s finances are at the top of 1 million BTC
As reported by Cointelegraph, according to Bitcointreasuries.net, the company’s Bitcoin finances hold over $117 billion in Bitcoin.
Michael Saylor’s strategy is a top holder of 636,505 BTC, followed by Mara Holdings of over 52,000 BTC. Newcomers like XXI and Bitcoin Standard Treasury are quickly gaining positions, while companies like Metaplanet, Bullish and Coinbase will round out their top 10.
In the future, companies like Metaplanet and Semler Scientific aim to acquire 210,000 BTC and 105,000 BTC by 2027, respectively, revealing their aggressive accumulation goals.
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