Capital International Investors, a $2.2 trillion asset management company and a Los Angeles-based Capital Group division, has bought a 12.2% stake in MicroStrategy.
According to a SEC filing, Capital International Investors purchased 953,242 shares of MicroStrategy's company which is now worth around $561 million at current prices. The regulatory filing which is dated June 30 but was signed by Capital Group Senior Vice President Walter Burkley on Monday, shows that CII has purchased 953,242 MicroStrategy common stocks and 7,782,568 outstanding shares. With Capital International’s recent share purchase, it is now indirectly exposed to Bitcoin as MicroStrategy currently holds 105,085 of the cryptocurrencies—worth $3.4 billion at today's prices.
Capital Group is a private equity firm that provides investment management services for long-term investors. It also offers its services to financial intermediaries and institutions worldwide through various products and solutions, including American Funds.
On the other hand, MicroStrategy ranks as a publicly traded firm with the largest BTC holdings in its reserves. The business intelligence firm started buying bitcoins in the summer of 2020 and has not stopped even in 2021. Since its foray into Bitcoin, the Michael Saylor led company’s market cap has increased from $1.15 billion as of June 30 last year to $6.5 billion this year.
Having bought BTC twice in 2021, Michael Saylor incurred debt to the tune of $400 million in June to buy more bitcoins as the digital currency, and other crypto prices continued their downward trend. Saylor’s move continues to attract cheers from the core crypto communities while some of his mainstream counterparts have blasted the CEO and his company. However, Michael Saylor has continued to preach and advocate for large corporations to add BTC to their balance sheets. The likes of Tesla and Jack Dorsey-led Square technologies also invested in Bitcoin following MicroStrategy’s strategic move into Bitcoin.
With the latest investment from Capital International Investors, it looks like Saylor’s move is paying off not just only in market valuation for the company but also in the interest of top-tier companies looking to grab hold of MSTR shares. Meanwhile, MicroStrategy currently holds 0.5% of Bitcoin’s total supply, a holding which could be a tremendous advantage for it in the future when mining rewards end.
BlackRock holds a slightly higher stake
While Capital International Investors currently holds a 12.2% stake in MicroStrategy, another giant hedge fund manager has a bigger stake in the firm. BlackRock, the world’s largest sovereign wealth fund, has a 14.56% stake in MicroStrategy. Earlier this year, Rick Rieder, CFO at BlackRock, in an interview with CNBC, said, “people are looking for places that could appreciate under the assumption that inflation moves higher and that debts are building, so we’ve started to dabble a bit into it.”
Will Ethereum win the heart of Saylor and MicroStrategy?
Ethereum fans have been wooing Michael Saylor to try out his hands on Ethereum as well, especially with popular figures like Mike Novogratz of Fidelity Capital and Alex Mashinsky, CEO of Celsius touting the largest smart contract platform to overtake Bitcoin in the future. If MicroStrategy adds Ethereum to its portfolio, it will follow the path of Chinese firm Meitu. The Xiamen-based photo editing and sharing company became the first major firm to buy Ether after it completed the purchase of 15000 ETH for $22.1 million on March 5.