UBS Group, the largest bank in Switzerland, has made headlines by significantly increasing its stake in Strategy, a company focused on Bitcoin development. This move comes despite the bank”s chief economist, Paul Donovan, publicly declaring that cryptocurrencies are “not an asset,” labeling them instead as a niche product.
According to UBS”s latest 13F filing for the fourth quarter of 2025, the bank”s holdings in Strategy have surged by 3.23 million shares, bringing its total to 5.76 million shares. This represents an impressive 128% increase from the previous amount of 2.53 million shares. At the time of the filing, the value of these shares was approximately $875 million; however, due to ongoing bearish trends in the cryptocurrency market, the share price has declined to $134.93 as of the last market close.
The drop in the overall market has affected UBS”s valuation of its Strategy shares, resulting in an estimated loss of around $98 million. The current valuation sits at approximately $777 million, assuming there have been no other changes to the share portfolio. This situation raises eyebrows, especially considering Donovan”s remarks, which seem contradictory to UBS”s investment strategies that involve significant exposure to Bitcoin through Strategy.
Donovan”s comments about cryptocurrencies being held by a “tiny portion of society” seem misaligned with UBS”s offerings of crypto access to private clients. The bank”s actions reflect a complex and perhaps conflicting stance on the cryptocurrency market, despite Donovan”s views.
Strategy, which remains the largest publicly traded company holding Bitcoin, has recently ramped up its Bitcoin acquisitions, now boasting a staggering 713,502 BTC. The company has been positioning itself as a leveraged play on Bitcoin for investors. Additionally, executive chairman Michael Saylor has indicated that further announcements regarding their Bitcoin strategy are forthcoming, leading to speculation about additional purchases or initiatives.
In a recent statement, Saylor highlighted that his company has outperformed the “Magnificent 7” stocks in terms of open interest, suggesting strong investor confidence amid ongoing market challenges. His comments, alongside the recent uptick in Bitcoin purchases, indicate that the narrative surrounding Strategy is evolving, potentially signaling a robust strategy for navigating the complexities of the current crypto market.
