Capital International Group Buys 12.2% of Microstrategy Shares

Capital Group has acquired 12.2% shares of business-intelligence software company MicroStrategy.

July 13, 2021, | AtoZ MarketsAccording to a filing with the Securities and Exchange Commission (SEC), Capital International Investors (CII), a division of major US asset management firm Capital Group, declared a 12.2% interest in the common stocks of bitcoin-focused company MicroStrategy (MSTR).

Capital Group now has a $560 million interest in MicroStrategy’s shares, making it the $2.3 trillion asset management firm the second-largest stakeholder after BlackRock, which has a $700 million holding.

Capital International Group was referred to as CII in the filing:

“CII is deemed to be the beneficial owner of 953,242 shares or 12.2% of the 7,782,568 shares believed to be outstanding.”

Capital International Group provides services to a wide range of financial industry clients, including family offices, wealth managers, pension trustees, and others. Despite the fact that the asset management has yet to officially remark on Bitcoin or cryptocurrencies, its investment in MicroStrategy suggests it may be looking into digital-asset exposure more widely.

Read also: HSBC Bans Clients from Trading MicroStrategy Shares

MicroStrategy CEO Michael Saylor has become a well-known person in Bitcoin circles, thanks to his company’s growing BTC holdings, which now total over 105,000 tokens. As reported by AtoZMarkets, the data analytics company has spent a total of $2.7 billion on bitcoin, borrowing money and issuing shares to do so.

Bitcoin has been designated as MicroStrategy’s “primary” treasury reserve asset, implying that the cryptocurrency is used for day-to-day cash management. The company’s Bitcoin holdings are now held in a newly formed subsidiary called MacroStrategy LLC.

Despite the fact that MicroStrategy has a strong business model in enterprise data analytics, investors are increasingly looking at the company as a potential alternative to investing in Bitcoin directly. The strong uptake of Canada’s Purpose Bitcoin ETF and the continued success of Grayscale’s GBTC fund indicate that institutional hunger is expanding. Funds like VanEck’s Digital Transformation ETF seek to replicate bitcoin’s performance by holding equity in the likes of Square, Coinbase, and MicroStrategy.

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