Capital Group, one of the world’s largest asset managers, has quietly turned a bold Bitcoin bet into one of the most profitable investments in recent history. Led by Mark Casey, a portfolio manager with over 25 years of experience at the firm, Capital Group has seen its less than $1 billion swell to $6 billion in just four years.
“I just love Bitcoin, I just think it’s so interesting,” Casey said on a podcast interview with Andreessen Horowitz.
That is not what you might expect to hear from a senior executive at one of the world’s largest traditional investment firms. But rather than buy Bitcoin directly, the 94-year-old mutual fund behemoth has invested in “Bitcoin treasuries” like Strategy (formerly MicroStrategy), whose main focus is Bitcoin.
If the huge investment didn’t turn heads, the 5-fold return sure has. Many see this as a turning point in how TradFi views crypto assets.
From quiet bet to blockbuster win
When Capital Group bought its first stake in Strategy in 2022, Bitcoin was still struggling in a prolonged bear market. Prices were hovering around A$24,000 to A$30,000, following the spectacular collapse of FTX and a wave of bankruptcies across the sector. At the time, few mainstream players were willing to attach their name to crypto.
When news broke out that Capital Group had earmarked $1 billion of its corporate treasury to purchase Bitcoin, it was met with scepticism. Many analysts questioned whether it was wise for a mainstream manager, so tied to bonds and equities, to pivot to such a notoriously volatile asset.
Fast forward to September 2025, and Bitcoin is trading above A$177,000. Capital Group’s investment is now valued at over $6 billion, which is staggering for a fund whose culture is defined by risk management and conservative growth.
In addition to Strategy, Capital Group has invested in Metaplanet and Mara Holdings, a bitcoin mining company.
A broader signal to TradFi
One of the key reasons for Capital Group’s foray into Bitcoin is Mark Casey’s belief that Bitcoin will grow to rival and even replace gold as a means of storing wealth. Currently, gold accounts for over 2% of the world’s wealth.
But not everyone in the industry is sold on Bitcoin. Some analysts don’t see Bitcoin ever replacing gold, which has hit record highs in recent days. And despite the eye-catching profit for Capital Group from its Bitcoin outlay, they don’t share the optimism.
“The investment in Bitcoin-related stock is surprising,” said Stephen Welch of Morningstar to the Wall Street Journal. “Typically, you are investing in a company with assets and cash flow, and in this case, you’re investing in a relatively untested currency, expecting the value to increase.”
According to Casey, his team evaluates these “bitcoin treasury” companies the same way they analyse those that trade in oil, gold, and other physical commodities.
While the $1 billion investment is a drop in the ocean compared to the $3 trillion Capital Group has under management, it does signal a huge move from a traditional investment fund.
Capital Group’s gigantic AUM makes it the fourth-largest fund manager in the world, trailing only BlackRock, Vanguard, and Fidelity. Its decisions are watched closely by peers, institutional clients, and regulators.
By proving that investments in Bitcoin can be profitable, Capital Group has shown “Bitcoin treasuries” can sit alongside U.S. Treasuries in conservative portfolio management.
“Capital’s move represents a paradigm shift,” noted one analyst. “If one of the most risk-averse, research-driven institutions in the world can allocate to Bitcoin and ride out volatility, that tells the rest of Wall Street this is no longer fringe. It’s finance.”
The treasury strategy
Casey was sold on Bitcoin from its early days, but as a mutual fund manager, he couldn’t purchase the cryptocurrency directly. That all changed in 2020 when MicroStrategy started loading up on Bitcoin.
The following year, Capital Group acquired a 12.3% stake in the Bitcoin whale. The stake is now valued at A$9.37 billion after some sales and would be even higher had it not been diluted by subsequent share issuances.
Capital Group did not buy Bitcoin to chase short-term returns. The firm structured the purchase as a multi-year allocation within its corporate treasury. With global inflation at record highs post-COVID and U.S. debt levels ballooning, it made sense to diversify a small portion of cash reserves into an uncorrelated asset like Bitcoin
“We viewed it as an insurance policy,” said one Capital Group executive in an off-record briefing earlier this year. “We didn’t need Bitcoin to work in the short term. But if it did, the upside could be asymmetric. That’s exactly what has played out.”
Ripple effects across asset management
Capital Group’s success has caused some firms to reassess their treasury strategies. It’s hard even for the biggest sceptics to ignore an A$7.5 billion swing in four short years. Although Bitcoin remains volatile, its performance has caused industry titans like Larry Fink to soften their stance on the digital asset.
The cryptocurrency has continued to set new highs, making it appealing as an alternative reserve asset. Already, some mid-sized Australian and US managers are testing small Bitcoin allocations within treasury or balanced funds. While many already were leaning on Bitcoin, most point to Capital Group’s disclosure as a catalyst.
But not everybody is sold. Warren Buffett and Jamie Dimon still have their reservations when it comes to digital assets.
The regulatory comfort zone
One reason Capital Group’s bet has paid off is the shifting regulatory climate. In the U.S., President Trump’s crypto-friendly policies have been a boon for investors.
In Australia, the landscape has also changed dramatically compared to a few years ago. The Australian Securities and Investments Commission (ASIC) now permits Bitcoin ETFs, and self-managed superannuation funds (SMSFs) are permitted to invest directly in Bitcoin.
This regulatory clarity has allowed Capital Group to hold Bitcoin with confidence and invest in foreign “Bitcoin treasuries” with minimal risk.
What this means for the future of TradFi
Capital Group’s A$9.37 billion Bitcoin win is likely to cause more traditional finance firms to take a look at digital assets. If even a fraction of the global asset management industry, which oversees more than $100 trillion, follows Capital Group’s lead, demand for Bitcoin would be unprecedented.
Still, questions remain. Bitcoin is volatile, and sharp corrections are part of its DNA. Will conservative managers stomach a potential 50% drawdown, or will they lock in profits after a rally like this? Will regulators continue to loosen rules, or will political shifts lead to a clampdown again?
