Capital Group Buys 12.2% Stake in Bitcoin-Proxy MicroStrategy

MicroStrategy is heavily invested in bitcoin and has bought over 105,000 bitcoins for approximately $2.741 billion, as of late June.

article-image
share

key takeaways

  • The global investment management company, Capital Group, ranks among one of the oldest and largest investment management firms in the world
  • MicroStrategy has recently emerged as one of the most crypto-bullish public companies in the world, under the leadership of CEO Michael Saylor who previously said bitcoin was the only investment he believes in

Capital International Investors (CII), a division of the Los Angeles-based Capital Group, purchased 953,242 shares or a 12.2% stake in MicroStrategy, a business intelligence and analytics platform, according to a filing with the US Securities and Exchange Commission. 

Although the SEC filing was submitted on June 30, CII Senior Vice President and Senior Counsel Walter Burkley signed off on the securities purchase on Monday, July 12, the document shows. 

A Capital Group spokesperson declined to comment on the “individual holdings,” citing company policy, when Blockworks reached out for additional information. MicroStrategy was not available for immediate comment on July 13.

The global investment management company, Capital Group, ranks among one of the oldest and largest investment management firms in the world with over $7.6 billion in revenue. As of December 31, 2020, the firm said it manages more than $2.3 trillion in equity and fixed income assets for millions of individuals and institutional investors around the world.

The investment gives CII an indirect line into the cryptocurrency market, as MicroStrategy is heavily invested in bitcoin and has bought over 105,000 bitcoins for approximately $2.741 billion, as of late June. 

Prior to the purchase in early June, MicroStrategy announced that it would offer $500 million of senior secured notes with an annual interest rate of 6.125% in a private offering to qualified institutional buyers to finance the purchasing of more bitcoin, Blockworks previously reported. It marked the first time junk bonds were used to fund a cryptocurrency acquisition. 

MicroStrategy has recently emerged as one of the most crypto-bullish public companies in the world, under the leadership of CEO Michael Saylor who previously said bitcoin was the only investment he believes in. During the Bitcoin 2021 conference in Miami, Saylor said while on a panel, “I guess I lost faith in all of my traditional investments,” referring to what made him eventually decide to venture into crypto, Blockworks reported

In March, Saylor also warned about the toxicity of cash and traditional assets during a Blockworks webinar. He said that “bitcoin and digital assets became the solution to monetary inflation” and added, “there’s an awareness that isn’t going away.”

MicroStrategy’s stock on NASDAQ was up less than 1%, or $1.61, to $590.30 as of 2:40 pm ET on July 13.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

recent research

LTIPPanalysis.png

Research

This report is a retroactive analysis of Arbitrum's Long Term Incentives Pilot Program (LTIPP). We collect relevant data at a protocol level and review bi-weekly updates to analyze recipients, their strategies, and the impact of the incentives on high level growth metrics. In particular, we want to highlight outperformers and underperformers, and glean any best practices or lessons learned for protocols distributing ARB incentives in the future. The overarching goal is to synthesize lessons learned that the DAO can reference as it begins thinking about future incentives programs–namely, the working group for incentives that is being actively discussed–especially as Timeboost introduces new conditions for trading and economic activity.

article-image

Sponsored

AI project Zerebro intersects the spheres of artificial intelligence, finance, art, music, and culture

article-image

Allmight is focused on furthering the United States’ leadership in crypto

article-image

The conditions Charles Schwab is waiting for before jumping headfirst into crypto could take shape soon

article-image

The FCA’s director of payments and digital assets shared some takeaways from chats with crypto companies and law firms

article-image

Let’s take a look at how US equities typically perform this time of year and what we might see in the coming days

article-image

Lumina introduces transparency and permissionless integration via an OP stack-based optimium, challenging traditional oracle designs