YEREVAN (CoinChapter.com) — Norway’s sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), has increased its indirect exposure to 2,446 Bitcoin (BTC) as of the first half of 2024. This exposure equates to an average of $27 in Bitcoin per Norwegian citizen. The fund’s Bitcoin-related holdings now total $143 million, reflecting an increase of 938 BTC since December 31, 2023.
The fund’s Bitcoin exposure has grown through investments in tech firms that hold significant amounts of the cryptocurrency. Vetle Lunde, a senior analyst at K33Research, noted that this exposure is likely not a deliberate decision by the Norwegian government to hold Bitcoin.
Wealth Fund Grows Bitcoin Stake via Key Crypto Investments
The Norwegian fund’s Bitcoin exposure primarily comes from investments in companies such as MicroStrategy, Block, and Marathon Digital. MicroStrategy, led by Michael Saylor, is one of the world’s largest Bitcoin holders. The fund increased its stake in the company from 0.67% to 0.89% during the first half of 2024. In the same period, MicroStrategy expanded its Bitcoin holdings by 37,181 BTC.
The fund also increased its exposure to Marathon Digital, a Bitcoin mining firm, from 0% to 0.82%. Additionally, it boosted its investments in Coinbase, a cryptocurrency exchange, from 0.49% to 0.83%, and in Block, Inc., from 1.09% to 1.28%. These increases have contributed to the fund’s growing indirect exposure to Bitcoin.
Governments’ Strategies: Seizures vs. Strategic Reserves
Norway’s indirect Bitcoin holdings are part of a broader trend among governments. The U.S. government holds $12.5 billion worth of Bitcoin, mostly from seizures related to criminal activity. Similarly, the UK government holds $3.5 billion in Bitcoin, also primarily through confiscations.
In contrast, El Salvador has actively built a Bitcoin reserve, holding 5,700 BTC worth about $339 million. Unlike Norway, El Salvador’s Bitcoin holdings are a deliberate part of its financial strategy, as Bitcoin is legal tender there.
Norway’s growing Bitcoin exposure through its wealth fund highlights the cryptocurrency’s increasing presence in traditional financial systems, even if indirectly.
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