This Hedge Fund Just Made $6 Billion from Bitcoin Stocks! Here is How

2025-09-15

Bitcoin has long been viewed as a disruptive, volatile, and highly speculative asset often too risky for conservative institutions. Yet in 2025, one of the world’s oldest and most cautious hedge funds proved that even traditional finance can unlock massive gains from digital assets.

Capital Group, a nearly 100-year-old investment firm, recently revealed it made $6 billion in profits by investing in Bitcoin-related companies. Remarkably, this fortune was built without ever buying Bitcoin directly.

Instead, Capital Group treated Bitcoin as a commodity-style play and gained exposure through companies that hold Bitcoin on their balance sheets.

This story is more than just a financial headline, it’s a case study in how traditional funds can adapt to the digital economy, and how individual investors can learn from their strategy.

Who is Capital Group?

Founded in 1931, Capital Group is one of the most respected names in global asset management, with trillions of dollars under management. Known for its long-term, fundamentals-first approach, the firm typically avoids fads and speculative trends.

Historically, Capital Group invested in blue-chip equities, bonds, and commodities like gold and oil. For decades, it resisted crypto’s allure.

But as Bitcoin matured and corporate treasuries began holding it as a reserve asset, Capital Group recognized an opportunity that aligned with its investment philosophy: exposure to Bitcoin’s scarcity through established, regulated companies.

This was a dramatic yet calculated shift one that turned into one of its most successful bets in recent history.

The Strategy: Bitcoin Exposure Without Bitcoin

Rather than wrestling with custody, regulation, and direct volatility, Capital Group invested $1 billion into companies tied to Bitcoin. That stake is now worth over $6 billion.

The strategy hinged on three main investment types:

1. Strategy (formerly MicroStrategy)

The crown jewel of this portfolio, Strategy became the world’s most famous Bitcoin proxy. Originally a business intelligence software firm, it transformed under CEO Michael Saylor, who aggressively accumulated Bitcoin starting in 2020.

By 2025, Strategy’s stock had risen more than twentyfold in five years, driven almost entirely by its massive Bitcoin holdings. For Capital Group, early entry into this stock translated into astronomical gains.

2. Metaplanet (Japan)

A surprising play was Metaplanet, a Japanese hotel operator that pivoted into Bitcoin reserves. Its bold decision to allocate treasury funds into Bitcoin showcased how adoption is spreading beyond tech firms into traditional industries.

Capital Group’s investment in Metaplanet wasn’t just about returns, it was a signal that Bitcoin’s appeal is now global, crossing geographic and sectoral boundaries.

3. Large-Scale Bitcoin Miners (e.g., MARA Holdings)

Mining companies like MARA Holdings also became part of the portfolio. These firms not only validate Bitcoin transactions but often keep significant reserves of the cryptocurrency. As Bitcoin’s price climbed, miners benefitted from both rising block rewards and reserve appreciation, amplifying Capital Group’s upside.

Why This Approach Worked

Capital Group’s brilliance was in framing Bitcoin as a commodity, not a speculative gamble. Just as it would value a gold miner or oil producer, the firm assessed:

Balance sheet strength — how much Bitcoin the company held.
Business fundamentals — whether the firm could survive bear markets.
Market correlation — how tightly the stock tracked Bitcoin’s price.

By using this lens, Capital Group transformed what many see as “crypto speculation” into a traditional asset-class play.

The Bigger Picture: Institutional Embrace of Bitcoin

Capital Group isn’t alone in this shift. Today:

Corporate treasuries collectively hold over 1 million Bitcoin, worth more than $117 billion.
Giants like Tesla, Coinbase, and Square continue to expand Bitcoin reserves.
Even governments and pension funds are exploring indirect Bitcoin exposure.

This movement marks a paradigm shift: from skepticism to integration. Bitcoin is no longer just for retail traders or crypto-native funds, it’s becoming a core allocation in institutional portfolios.

Forward-Looking Insights: What This Means for Investors

The ripple effects of Capital Group’s strategy are profound:

Legitimization of Bitcoin-linked stocks
When a conservative, century-old fund commits billions to Bitcoin treasuries, it signals to Wall Street that Bitcoin exposure is no longer fringe.
Increased demand for Bitcoin proxies
Stocks like Strategy, Metaplanet, and MARA may see higher institutional flows, pushing valuations further.
New investment vehicles on the horizon
Expect more ETFs, structured products, and funds designed to provide Bitcoin exposure without direct crypto holdings.

For individual investors, this institutional validation creates both opportunities and risks. While these stocks offer a bridge into Bitcoin, they are often more volatile than BTC itself, reflecting both market swings and company-specific factors.

How You Can Trade Bitcoin Stocks Yourself

Capital Group’s playbook offers a practical framework for retail investors:

Step 1: Research Bitcoin Treasury Companies

Look for firms like Strategy or Metaplanet that hold substantial Bitcoin reserves. Evaluate their balance sheets and long-term treasury strategies.

Step 2: Explore Bitcoin Miners

Miners like MARA or RIOT act as leveraged bets on Bitcoin’s price. They can generate outsized returns during bull runs but may struggle in prolonged downturns.

Step 3: Consider Diversified Vehicles

ETFs tracking Bitcoin treasury stocks or mining companies are emerging. These offer diversified exposure without needing to pick winners.

Step 4: Balance Direct and Indirect Exposure

A balanced portfolio might include:

Direct Bitcoin holdings (for pure exposure).
Bitcoin proxy stocks (for equity upside).
ETFs or funds (for diversification).

Step 5: Use Regulated Platforms

Whether buying Bitcoin directly or investing in Bitcoin stocks, ensure you use regulated exchanges or brokers with strong compliance standards.

Read Also: What Are Bitcoin Treasuries?

Conclusion

Capital Group’s $6 billion windfall proves that even the most conservative funds can find enormous value in Bitcoin without ever holding the coin itself. By treating Bitcoin like a commodity and investing in companies with significant BTC reserves, the firm bridged old-world finance and the new digital economy.

For investors, the lesson is clear: the Bitcoin opportunity is not limited to buying BTC directly. Stocks, miners, and corporate treasuries can provide exposure with familiar, regulated structures.

FAQ

Did Capital Group buy Bitcoin directly?

No, it bought shares in Bitcoin treasury companies and miners, avoiding direct custody risks.

Why is Strategy (formerly MicroStrategy) so crucial?

Its transformation into a Bitcoin proxy caused its stock to rise 20x in five years, making it the fund’s biggest winner.

Are Bitcoin miners a safe investment?

They can be highly profitable but also volatile, as they depend on energy costs, regulation, and Bitcoin’s price.

Can retail investors replicate this strategy?

Yes, by buying Bitcoin-linked equities, ETFs, or miners while diversifying into direct Bitcoin exposure.

What does this mean for Bitcoin’s future?

Institutional adoption through treasury stocks signals Bitcoin’s growing role as a mainstream financial asset.

Bitrue Official Website:

Website: https://www.bitrue.com/

Sign Up: https://www.bitrue.com/user/register

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.

crypto-investment

Disclaimer: The content of this article does not constitute financial or investment advice.

Join Bitrue for exclusive rewards