Standard Chartered: Governments are investing in Bitcoin via Michael Saylor’s Strategy shares.
▪️In Q1 2025, government entities increased their holdings in Strategy (formerly MicroStrategy, ticker MSTR), which holds around 2.6% of all existing Bitcoin, according to a Standard Chartered report citing newly filed SEC disclosures.
▪️The bank called positions in U.S. Bitcoin ETFs “disappointing,” while the increase in investments in Strategy was described as “encouraging.” For example, the Wisconsin state pension fund fully exited its position in BlackRock’s Bitcoin ETF (IBIT), equivalent to 3,400 BTC. Meanwhile, Abu Dhabi’s sovereign wealth fund Mubadala increased its IBIT holdings from the equivalent of 4,700 BTC to 5,000 BTC.
▪️The report focuses on Strategy shares as a proxy investment in Bitcoin. In some jurisdictions, this serves as a workaround to restrictions on direct crypto ownership, the bank notes.
▪️In Q1, increased holdings in Strategy came from the Norwegian sovereign fund, Swiss National Bank, South Korean state funds, and state pension funds of California, New York, North Carolina, and Kentucky, totaling around 1,700 BTC in equivalent value. France and Saudi Arabia acquired Strategy shares for the first time — a sign, analysts say, of expanding sovereign interest in Bitcoin.
▪️Standard Chartered analysts believe this trend supports their forecast of Bitcoin reaching $500,000 by the end of Donald Trump’s presidential term in 2029.
▪️“As Bitcoin becomes more accessible and less volatile, investors will gradually move toward an optimal allocation [of Bitcoin] in their portfolios,” they write.
▪️The chart shows the growth of combined sovereign positions in U.S. Bitcoin ETFs and Strategy shares (in 1,000 BTC equivalents) from late 2023 to Q1 2025. Source: Standard Chartered.