For years, Vanguard has distanced itself from the world of cryptocurrencies, often calling Bitcoin “immature” and lacking any real value.
So, imagine the surprise when the $10 trillion asset management giant turned out to be the largest shareholder in MicroStrategy—a company practically synonymous with Bitcoin thanks to Michael Saylor.
It wasn’t part of some crypto endorsement strategy.
It happened quietly, almost unintentionally.
But now, Vanguard holds over 20 million shares in the company, accounting for nearly 8% of MicroStrategy’s Class A stock.
How Index Investing Pulled Vanguard In
This wasn’t about a sudden change of heart or a bold leap into digital assets.
According to Bloomberg, Vanguard’s ownership came about simply because of its passive investment strategy.
As MicroStrategy’s stock price soared, it took up more space in the indexes that Vanguard’s funds follow.
And like clockwork, the asset manager bought more shares to keep up.
The irony? While Vanguard’s top brass once criticized Bitcoin for being unpredictable and risky, their rules-based investing model made it impossible to avoid MicroStrategy’s rising stock—which is, by extension, a massive proxy for Bitcoin.
MicroStrategy’s Massive Bitcoin Pile
Let’s put things into perspective. MicroStrategy currently holds over 601,000 BTC.
That means anyone who owns Vanguard index funds is now indirectly tied to one of the biggest Bitcoin holdings in the world—even if they never intended to be.
Since 2020, MicroStrategy’s stock has exploded by over 3,400%, thanks largely to its Bitcoin holdings.
That meteoric rise pushed it deeper into the top tier of market indexes, making it harder for Vanguard to avoid buying in, despite its past skepticism toward crypto.
Vanguard Avoided Bitcoin ETFs But Landed in the Middle of It Anyway
While other major financial players like BlackRock have dived into the crypto space with purpose-built Bitcoin ETFs, Vanguard famously stayed away.
It didn’t launch a single spot Bitcoin ETF.
But now, thanks to the quirks of passive investing, it finds itself holding a huge piece of MicroStrategy—which might be even more volatile than an ETF.
In short, Vanguard didn’t want Bitcoin—but the market gave it Bitcoin anyway.
Saylor Sees a Silver Lining
Michael Saylor, never one to miss a moment, took this as a sign that the tide is turning.
Speaking to Bloomberg, he called Vanguard’s unexpected stake a “powerful signal” that institutions are slowly warming up to Bitcoin, even if they aren’t shouting it from the rooftops.
After years of being treated like the wild card of the financial world, Bitcoin now has some of the biggest names in traditional finance indirectly connected to it.
That kind of quiet backing could be just the beginning.
A Bit of Humor in the Irony
Eric Balchunas, a senior analyst at Bloomberg, couldn’t resist pointing out the amusing twist.
“God has a sense of humor,” he joked on X (formerly Twitter).
His take? Vanguard, with all its Bitcoin skepticism, now holds a major stake in one of the most Bitcoin-heavy stocks on the market—not by choice, but by index rules.
Institutional Reluctance Might Be Cracking
While it’s true that Vanguard didn’t go out looking for a piece of the Bitcoin action, its current position may encourage others to reconsider.
For traditional investors sitting on the fence, this might be the nudge that makes crypto seem a little more mainstream.
In the end, Vanguard’s situation is a classic example of how passive investing can lead to very active consequences—especially when the market is moving fast and unpredictable assets like Bitcoin are involved.