In a major vote of confidence for bitcoin, global investment behemoth Capital Group has quietly amassed a significant stake in two leading corporate proponents of the original cryptocurrency. With over $2.3 trillion in assets under management, Capital Group’s move may signal a tipping point for mainstream institutional adoption.
Capital Group Bets Big on Bitcoin
Most notable is Capital Group becoming a 5% shareholder in Metaplanet, a Japanese company that has embraced a bitcoin treasury strategy similar to Michael Saylor’s MicroStrategy. Metaplanet, which pivoted from hotel investments to crypto, now holds 1,762 BTC, ranking it as the 15th largest publicly traded bitcoin holder.
But Capital Group’s crypto conviction doesn’t stop there. The Los Angeles-based giant is also the second largest shareholder in MicroStrategy itself after Saylor, owning over 8% of the company. MicroStrategy’s stock is up an eye-popping 1700% since it began accumulating bitcoin in its corporate treasury in 2024.
Institutional Dominos Falling
Capital Group is just the latest mega-investor to dip more than a toe into crypto waters. It joins the ranks of Vanguard Group, Morgan Stanley, and Jane Street Group who also own substantial MicroStrategy stakes. This growing institutional acceptance of bitcoin as a legitimate treasury asset represents a seismic shift from just a few years ago.
We are seeing the early beginnings of the institutionalization of bitcoin, both as an asset class and as a corporate treasury strategy.
— Lyn Alden, financial researcher
Indeed, a 2024 survey showed nearly 20% of institutional investors now own some bitcoin, up from closer to zero when MicroStrategy first blazed the trail. From hedge funds to university endowments to the mighty Capital Group, the smart money is moving steadily into crypto.
Risks and Opportunities Ahead
Of course, bitcoin’s notorious volatility means any crypto treasury strategy is not for the faint of heart. Metaplanet’s Gerovic acknowledges it will be a “bumpy ride” but believes strongly that BTC offers asymmetric return potential as “a fail-safe for the failure of central bank fiat money.”
- Regulatory uncertainty and potential for more crackdowns remain key risks
- Bitcoin’s environmental impact is also under the microscope with new carbon tracking tools
But believers like Saylor and now Gerovic are taking the long view, wagering that bitcoin will be the ultimate reserve asset of the future. As more blue-chip institutions place their own chips on the crypto table, that future may be fast approaching.
The Bottom Line for Investors
Capital Group’s big moves into bitcoin are yet another sign that a rising number of institutional heavyweights are taking crypto seriously as a portfolio and treasury asset. For individual investors, some key takeaways:
- Institutional support provides underlying demand, liquidity, and validation for BTC as “digital gold”
- Allocating a small slice to BTC can boost returns and diversification (but not without added risks)
- Crypto pure plays like Metaplanet and MicroStrategy give indirect equity exposure to bitcoin’s price
As corporate titans like MicroStrategy, Metaplanet, and now the mighty Capital Group charge ahead with crypto, bitcoin’s path to institutional and mainstream acceptance only continues to accelerate. Buckle up for what promises to be an exciting ride ahead.
