SCHEDULE: Vanguard Discloses 5% Stake in Butterfly Network

The Vanguard Group has reported a 5% beneficial ownership stake in Butterfly Network Inc., holding over 11 million shares.

Summary

• The Vanguard Group, an investment adviser, has filed a Schedule 13G indicating beneficial ownership of 11,315,969 shares of Butterfly Network Inc. Common Stock.
• This aggregate amount represents 5% of the class of securities.
• Vanguard holds shared voting power over 1,457,633 shares and shared dispositive power over all 11,315,969 shares.
• The filing notes an internal realignment at The Vanguard Group, Inc. effective January 12, 2026, where it no longer performs portfolio management or administers proxy voting.
• Following this realignment, certain subsidiaries or business divisions of Vanguard are anticipated to report beneficial ownership separately (on a disaggregated basis).

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral. It is a standard disclosure of passive beneficial ownership by a large institutional investor and does not contain information directly impacting the issuer's operational or financial performance.

Positives

• A major institutional investor like The Vanguard Group holding a 5% stake can signal confidence in Butterfly Network Inc.'s long-term prospects.
• The investment is stated to be held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.

Future Outlook

The Vanguard Group anticipates that certain subsidiaries or business divisions will report beneficial ownership separately from The Vanguard Group, Inc. in reliance on SEC Release No. 34-39538, following an internal realignment.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under 240.14a-11."

Industry Context

StockSavvy.ai notes that The Vanguard Group is one of the world's largest investment management companies, known for its passive investment strategies, primarily through index funds and ETFs. A 5% stake by such a prominent institutional investor in Butterfly Network Inc. indicates its inclusion in various broad market or sector-specific indices that Vanguard manages. This type of disclosure is common for companies included in major indices, reflecting the broad market's exposure to the company.

Stakeholder Impact

• Shareholders: The disclosure of a significant stake by a major institutional investor like Vanguard can provide a level of validation or stability, potentially influencing investor sentiment.
• Investment Community: Provides transparency regarding significant ownership positions, which is crucial for market analysis and regulatory oversight.

Next Steps

• The Vanguard Group's subsidiaries or business divisions are anticipated to report beneficial ownership separately (on a disaggregated basis) from The Vanguard Group, Inc. in the future.

Key Dates

Keywords

Vanguard Group, Butterfly Network Inc, Schedule 13G, Beneficial Ownership, Institutional Investor, Common Stock, Investment Adviser