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

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

Sponsored

The convergence of AI and blockchain on Polkadot represents a groundbreaking opportunity for investors and developers alike

article-image

The company is making public a previously private offer rejected by Bitfarms’ board of directors last month

article-image

Semler Scientific, a publicly traded medical tech company, joined MicroStrategy by buying up millions of bitcoin

article-image

As someone who’s been knee-deep in the trenches of blockchain development, I can’t help but wonder if these behemoths are really cutting it anymore

article-image

UNI and MKR are suffering from the successes of their respective protocols

article-image

Maybe there’s no silver bullet to avoiding most tokens dumping after launch…