The Norwegian sovereign wealth fund (Norges Bank Investment Management, or NBIM) has seen its indirect Bitcoin (BTC) holdings increase by 938 BTC since December 31, 2023, bringing the total to 2,446 BTC by the end of the first half of 2024.
This increase is attributed to pre-determined algorithmic sector weighting and risk diversification strategies, rather than a deliberate attempt to expand Bitcoin exposure, according to K33 analyst Vetle Lunde.
Lunde suggests that the growth likely results from broader portfolio adjustments rather than direct initiatives to increase Bitcoin holdings. If the fund had intentionally targeted a higher Bitcoin exposure, more direct investments and larger allocations would have been evident.
This development is seen as a reflection of Bitcoin’s growing acceptance and integration into diversified investment portfolios, underscoring its maturation as an asset class. The influence of corporate Bitcoin treasury strategies, as advanced by notable figures such as Michael Saylor of MicroStrategy, Jack Dorsey of Block Inc., and Peter Thiel, has played a role in this trend.
Key contributors to the growth in NBIM’s indirect Bitcoin exposure include:
- Increased exposure to MicroStrategy: The fund’s stake in MicroStrategy rose from 0.67% to 0.89%. MicroStrategy itself increased its Bitcoin holdings by 37,181 BTC in the first half of 2024.
- New exposure to Marathon Digital: NBIM’s exposure to Marathon Digital, a prominent Bitcoin mining company, grew from 0% to 0.82%.
- Increased exposure to Coinbase: The fund’s stake in Coinbase, a leading cryptocurrency exchange, increased from 0.49% to 0.83%.
- Increased exposure to Block Inc.: NBIM’s investment in Block Inc., which has a significant focus on Bitcoin, increased from 1.09% to 1.28%.
By the end of the first half of 2024, the Norwegian fund’s indirect Bitcoin exposure translated to 44,476 satoshis (sats) per capita, equivalent to approximately $27, further highlighting the asset’s penetration into traditional investment frameworks.
