Mutual Fund Giant Capital Group's Bitcoin-Related Stock Holdings Surge from $1 Billion to Over $6 Billion

BlockBeats News, September 14th, according to Cointelegraph, Capital Group, a 94-year-old mutual fund giant known for its conservative investment style, has seen its holdings in Bitcoin-related stocks grow from $1 billion to over $6 billion.

According to The Wall Street Journal, Mark Casey, a portfolio manager at Capital Group with 25 years of experience, led the company's foray into Bitcoin. Casey stated that his investment style was heavily influenced by Benjamin Graham and Warren Buffett, but he has now become an advocate for Bitcoin.

Casey said in an interview with venture capital firm Andreessen Horowitz's podcast: "I just like Bitcoin, I think it's very interesting." He called Bitcoin "one of the coolest things ever created by humans." Over the past four years, Capital Group has mainly expanded its Bitcoin exposure by investing in so-called "Bitcoin reserve companies" (i.e., publicly traded companies that accumulate and hold Bitcoin on their balance sheets).

In 2021, Capital Group acquired over $500 million worth of Strategy at a price. Due to subsequent issuances and partial divestments, the stake has been diluted to 7.89%, but with Strategy's share price rising more than 2200% over the past five years, this part of the holding is currently worth around $6.2 billion. Capital Group's Bitcoin exposure also includes a 5% stake in Metaplanet and shares in mining firm Mara Holdings.