Asset management giant BlackRock has recently increased its stake in Strategy—led by Bitcoin pioneer Michael Saylor—to 5%, reinforcing its commitment to Bitcoin investments. This move coincides with MicroStrategy’s rebranding to Strategy, adopting a Bitcoin-centric corporate identity.
BlackRock Expands Holdings in Strategy
According to a filing submitted to the SEC on February 6, BlackRock now holds a 5% stake in Strategy (formerly MicroStrategy), highlighting growing institutional interest in Bitcoin. However, the news had minimal impact on Strategy’s stock price (MSTR), which traded between $320 and $325 that day.
Other major investors, including:
- Norway’s Sovereign Wealth Fund
- South Korea’s National Pension Service
have also been revealed as shareholders of Strategy, indirectly participating in Bitcoin exposure.
👉 Bitcoin Treasuries reports that Strategy holds 471,000 BTC (worth ~$45.5 billion), cementing its position as the largest corporate Bitcoin holder. BlackRock’s increased stake further strengthens Strategy’s influence in the Bitcoin market.
BlackRock & Strategy Double Down on Bitcoin
Despite Bitcoin’s volatile price movements—fluctuating around $100,000—both BlackRock and Strategy continue expanding their Bitcoin investments.
Strategy’s Bold Bitcoin Strategy
- Q4 2024: Recorded a $1 billion digital asset impairment loss.
"21/21 Plan": Aims to raise $42 billion over three years (starting October 30, 2024), including:
- $21 billion in equity
- $21 billion in fixed-income securities
Funds will be used to acquire Bitcoin as a reserve asset.
Current Capital Structure:
- 16.7 billion shares issued
- $3 billion convertible bonds
- $600 million preferred stock (classified as fixed income)
BlackRock’s Bitcoin ETF Dominance
BlackRock’s spot Bitcoin ETF (IBIT) is now the 31st largest ETF globally, with:
- $56.8 billion AUM
- 48.7% share of U.S. Bitcoin ETF holdings
👉 SosoValue data shows $40.6 billion in inflows, playing a key role in Bitcoin’s March & November 2024 price surges.
Bitcoin Reserve Bills Gain Traction in U.S. States
Beyond Wall Street, U.S. states are increasingly embracing Bitcoin:
- Kentucky: Became the 16th state to propose Bitcoin reserve legislation.
- Oklahoma, Texas, Pennsylvania: Leading efforts to integrate Bitcoin into state reserves and pension funds.
These developments signal growing institutional and governmental acceptance of Bitcoin, positioning it as a potential cornerstone of future financial systems.
FAQs
1. Why did BlackRock increase its stake in Strategy?
BlackRock’s move reflects deepening institutional confidence in Bitcoin as a long-term store of value, aligning with Strategy’s aggressive BTC accumulation strategy.
2. How does Strategy fund its Bitcoin purchases?
Through a mix of equity issuance, convertible bonds, and preferred stock, as part of its 21/21 Plan to raise $42 billion.
3. What impact do Bitcoin ETFs have on BTC’s price?
ETFs like BlackRock’s IBIT drive liquidity and institutional demand, contributing to price rallies (e.g., March & November 2024 surges).
Risk Warning: Cryptocurrency investments are highly volatile. You may lose all capital. Assess risks carefully.
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