• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 11 hours U.S. Presidential Elections Status - Electoral Votes
  • 1 day Evergrande is going Belly Up.
  • 2 days Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 1 day Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 11 hours Europeans and Americans are beginning to see the results of depending on renewables.
  • 5 days World’s Biggest Battery In California Overheats, Shuts Down
  • 4 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 1 day Forecasts for Natural Gas
  • 3 days Ten Years of Plunging Solar Prices
  • 3 days Extraction of gasoline from crude oil.
The European Energy Crisis Is About To Go Global

The European Energy Crisis Is About To Go Global

In the modern interconnected world,…

UK Could See Gas Prices As High As $1250 Per MWh

UK Could See Gas Prices As High As $1250 Per MWh

The UK’s energy crisis is…

Norway’s Oil Fund Is Buying Bitcoin

Norway’s sovereign wealth fund holds close to 600 Bitcoin through a 1.51-percent stake in MicroStrategy—a business intelligence firm that recently made headlines with its Bitcoin buying spree. The amount of Bitcoin the fund is exposed to through its stake is worth about $6.3 million at current prices.

According to Arcane Research, which revealed the figures, BlackRock and Vanguard are also holders of Bitcoin through their MicroStrategy stakes, which suggests some mainstream investors such as the fund and the two asset management giants may be more exposed to the cryptocurrency than one might expect.

The Government Pension Fund Global, as the sovereign wealth fund is officially known, has assets in excess of $1 trillion, most of this made through investments made possible by Norway’s oil wealth. However, the fund has recently begun a shift away from oil holdings in a bid to reduce its exposure to a highly volatile industry.

As part of this effort, the fund said last year it would divest some of its oil stocks. Initially, it planned to divest all its oil holdings, which amounted to some $40 billion last year, but it ended up divesting only some $6 billion worth of assets, all in pure-play oil companies, while keeping its stakes in integrated oil industry players.

This divestment did not shield the fund from the effects of the coronavirus pandemic that rattled all industries across the world. For the first half of this year, the Government Pension Fund Global reported a loss of $21 billion, with returns swinging into the negative and averaging -3.4 percent over the period.

Also during the first half, the Norwegian government tapped the fund to prop up the country’s economy, using $41 billion for this. This accounted for 4.2 percent of the fund, which made it a rarely high withdrawal, highlighting the gravity of the effects that the pandemic had on even an economy as strong as Norway’s.

By Michael Kern for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News