SNB Invests in MicroStrategy to Gain Bitcoin Exposure

The SNB's investment in MicroStrategy allows it to gain exposure to Bitcoin's potential upside. This is without directly purchasing Bitcoin.

The Swiss National Bank (SNB) has reportedly made an indirect investment in Bitcoin by purchasing shares of MicroStrategy (Nasdaq: MSTR). This move by the SNB is a significant development in the mainstream adoption of cryptocurrencies.

According to a report by Blockware Solutions, Norges Bank, the central bank of Norway, has also invested in Strategy shares. This strategy allows central banks to gain exposure to Bitcoin’s potential upside without directly purchasing Bitcoin.

This approach is interesting as it juxtaposes the claims of European Central Bank (ECB) President Christine Lagarde. Earlier in April, Lagarde stated that the ECB has zero tolerance for any direct or indirect investment in Bitcoin.

However, Norges Bank’s move, which was first reported in December 2024, indicates that some central banks are exploring ways to engage with digital assets.

The SNB’s investment in Strategy is part of a broader trend of traditional financial institutions incorporating cryptocurrencies. These institutions are increasingly interested in engaging with the crypto market.

Strategy’s stock performance may also be a factor. Since adopting a Bitcoin strategy, Strategy’s stock has outperformed many S&P 500 companies. As of early April, Strategy’s stock had risen by more than 700% since the beginning of 2021.

For investors, the move by the SNB highlights the growing legitimacy of Bitcoin and other digital assets in mainstream finance. For some institutions, investing in companies with large Bitcoin holdings offers a viable alternative to direct crypto exposure.