The Norwegian sovereign wealth fund holds BTC which is nearly worth US$149.48 Million. Norwegian sovereign wealth fund’s (NBIM) current holdings of 2,446 BTC is an increase of 938 Bitcoin from December 31, 2023.
Speaking on this, Vetle Lunde, the Senior Analyst at K33Research tweeted, “The growth likely originates from pre-determined algo-based sector weighting and risk diversification. It’s unlikely to stem from an intentional choice to amass exposure—if increased BTC exposure was the target, we’d see more evidence of direct exposure initiatives (and significantly larger exposure).”
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Lunde further attributed the Norwegian indirect sat per capita exposure to 44,476 sats ($27) by the end of H1 2024 to corporate Bitcoin treasury strategies pushed by MicroStrategy’s Michael Saylor, Jack Dorsey and CEO of Marathon Digital Holdings, Fred Thiel.
To trace down the factors behind the growing indirect exposure in NBIM’s reserve, Bitcoin’s rising adoption in risk management should be considered.
MicroStrategy’s increased exposure, from 0.67% to 0.89% by 37,181 BTC in the first half of 2024, has set an example for other corporations to follow. Exposure in Marathon Digital top has increased its BTC exposure from 0% to 0.82% and so has Coinbase, from 0.49% to 0.83%.
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All in all, this exposure of Bitcoin as a means to diversify corporate portfolio demonstrates how Bitcoin can give diversification benefits and serve as a hedge against inflation or currency devaluation. In fact, NBIM’s plan can serve as a use-case for the US Treasury to use Bitcoin Reserves to slash its $35 Trillion debt.
