Norway’s sovereign wealth fund increased its indirect Bitcoin holdings by 62% in H1 2024, driven by corporate treasury strategies and diversification.
Norway’s Government Pension Fund (NBIM), the world’s largest sovereign wealth fund, significantly increased its indirect exposure to Bitcoin during the first half of 2024.
This growth saw the fund’s holdings rise from 1,507 BTC at the close of 2023 to 2,446 BTC by the end of June 2024, marking a 62% increase within six months. This sharp rise in exposure has drawn considerable attention within the crypto industry as it signals the continued integration of digital assets into global investment portfolios.
Industry Responses to Bitcoin Growth
Antony Welfare, a leader in enterprise blockchain, pointed to the steady momentum of crypto adoption in response to these developments. “The Adoption train is not stopping,” he said, highlighting the expanding presence of Bitcoin in institutional portfolios worldwide.
Welfare’s remark was built on the post from Vetle Lunde, a senior analyst at the crypto research firm K33, who first called attention to the development. Lunde offered additional insight into the reasons behind the fund’s increased exposure.
Notably, Lunde clarified that this surge unlikely resulted from a deliberate strategy to amass Bitcoin exposure. He noted that if that were the case, more direct exposure initiatives and significantly larger holdings would have been seen. Instead, it reflects a broader diversification effort across various sectors of the global economy.
Corporate Strategies Driving Norwegian Bitcoin Exposure
The expansion of NBIM’s Bitcoin holdings has been largely fueled by the corporate strategies of key players in the crypto sector. Notably, MicroStrategy, under the leadership of Michael Saylor, significantly increased its Bitcoin holdings in the first half of 2024, acquiring an additional 37,181 BTC.
Norway’s sovereign wealth fund increased its stake in MicroStrategy, raising its exposure from 0.67% to 0.89%.
Furthermore, NBIM boosted its exposure to other major crypto-related companies, including Marathon Digital, Coinbase, and Block Inc. This contributed to the fund’s overall indirect Bitcoin exposure, which now amounts to 44,476 satoshis per capita, valued at approximately $27 at the end of H1 2024.
Norway’s Regulatory Stance on Crypto
Despite this growing exposure to Bitcoin, Norway has maintained a cautious stance regarding cryptocurrency mining. In 2021, the country expressed support for Sweden’s regulatory initiative aimed at halting crypto mining across the European Union due to environmental concerns.
In line with these concerns, Norway introduced plans in April 2024 to regulate crypto-mining activities. The Norwegian government proposed restrictions on data centers involved in mining, citing the environmental impact of such operations.
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