Norway Central Bank Fund Grows Bitcoin Exposure Through $500M MicroStrategy Investment
Norway's central bank investment division, Norges Bank Investment Management (NBIM), now holds MicroStrategy shares worth $500 million, showing growth in its Bitcoin-linked investments. The fund's indirect Bitcoin holdings grew from 2,446 BTC to 3,821 BTC in the second half of 2024.
The investment comes as part of NBIM's broader portfolio management strategy. According to K33 Research Head Vetle Lunde, this exposure likely results from standard sector weighting rather than a specific choice to invest in Bitcoin. The development shows how Bitcoin investments are becoming part of standard diversified portfolios.
NBIM's cryptocurrency-related investments extend beyond MicroStrategy. The fund changed its position in Block (SQ), reducing exposure from 1.28% to 0.03%, which led to a 100.21 BTC decrease in indirect holdings. However, other investments saw growth, with Tesla adding 14.58 BTC to NBIM's exposure and Nexon doubling from 3.78 BTC to 7.55 BTC.
A notable change occurred with Riot Platforms, where NBIM's allocation increased from 0% to 0.44%, adding 76.69 BTC to its exposure. The fund also added Metaplanet at 0.55%, bringing in an additional 9.69 BTC. Overall, NBIM's indirect Bitcoin exposure in USD terms grew from $23 million in 2020 to $356 million, with Norwegian per capita exposure reaching 68,837 sats ($64).
Looking forward to 2025, Fidelity suggests more governments and central banks may increase their Bitcoin holdings. Matt Hogan from Fidelity notes that avoiding Bitcoin investments could present more risk for nations than adopting them, given concerns about inflation, fiscal deficits, and currency value changes.
The trend toward national Bitcoin adoption might proceed quietly. Analysts suggest countries looking to build Bitcoin positions would likely do so without public announcement to avoid affecting market prices. While discussions continue about potential U.S. strategic Bitcoin reserves, with support from some political figures, concrete plans remain undefined.
