Capital Group Scales Up Bitcoin Investment to Multi-Billion Dollar Holdings
Capital Group, a venerable mutual fund firm with a 94-year history and a reputation for conservative investing, has dramatically expanded its exposure to Bitcoin-related stocks. What began as a $1 billion position has now surged to exceed $6 billion, highlighting a significant strategic pivot within the firm.
Mark Casey Champions Bitcoin within Capital Group
Leading this shift is Mark Casey, a portfolio manager with 25 years at Capital Group, whose investment philosophy draws from Benjamin Graham and Warren Buffett. Casey has emerged as a vocal proponent of Bitcoin (BTC), describing it as “one of the coolest things that has ever been created by people,” according to a report by The Wall Street Journal.
Casey and his team have primarily increased their Bitcoin exposure by investing in publicly traded companies that hold Bitcoin on their balance sheets, commonly referred to as Bitcoin treasury firms.
Strategy Stake Drives Majority of Bitcoin Exposure
Capital Group’s most substantial Bitcoin-related holding is in Strategy (formerly MicroStrategy), a software company transformed into a Bitcoin investment vehicle by founder Michael Saylor. In 2021, Capital Group acquired a 12.3% stake in Strategy for over $500 million. Due to share issuance and portfolio adjustments, this stake now represents approximately 7.89% of the company but has appreciated to roughly $6.2 billion following a more than 2,200% increase in Strategy’s stock price over five years.
Casey explained that Capital Group assesses Bitcoin treasury companies similarly to how they evaluate commodity-related firms in gold or oil, emphasizing their view of Bitcoin as a commodity.
Additional Holdings and Corporate Bitcoin Landscape
Beyond Strategy, Capital Group holds a 5% stake in Japan-based Metaplanet, a company that transitioned from hotel operations to Bitcoin holdings, as well as shares in mining firm Mara Holdings.
Corporate Bitcoin treasuries have collectively amassed over 1 million BTC, valued at more than $117 billion, according to data from BitcoinTreasuries.NET. Strategy remains the largest corporate holder with 636,505 BTC, followed by Mara Holdings with over 52,000 BTC. Emerging firms such as XXI and Bitcoin Standard Treasury are rapidly increasing their Bitcoin reserves, while companies like Metaplanet, Bullish, and Coinbase contribute to the top ten holders.
Looking forward, several companies have announced ambitious Bitcoin accumulation goals, with Metaplanet targeting 210,000 BTC and Semler Scientific aiming for 105,000 BTC by 2027.
FinOracleAI — Market View
Capital Group’s substantial increase in Bitcoin-related holdings signals growing institutional acceptance of cryptocurrency assets, particularly through indirect exposure via Bitcoin treasury firms. The firm’s conservative reputation and methodical approach lend credibility to Bitcoin’s evolving role as a commodity-like asset within diversified portfolios. However, risks include regulatory uncertainties and volatility inherent in Bitcoin and related equities. Investors should monitor Capital Group’s ongoing allocation decisions and the performance of major Bitcoin treasury companies like Strategy for indications of broader institutional trends.
Impact: positive
