BlackRock Increases Bitcoin Holdings Again! Raises Stake in Michael Saylor’s Strategy to 5%
Asset management giant BlackRock recently increased its holdings in Strategy, led by Michael Saylor, to 5%, further strengthening its interest in Bitcoin. This increase coincided with MicroStrategy’s renaming to Strategy and adoption of a Bitcoin-themed brand image.
According to documents submitted to the US Securities and Exchange Commission (SEC) on February 6th, BlackRock has raised its stake in Strategy (formerly MicroStrategy) to 5%, demonstrating its growing institutional interest in Bitcoin. However, this investment news seems to have had little impact on Strategy’s stock price (MSTR), which has remained between $320 and $325 throughout the day.
Previously, the Norwegian sovereign wealth fund and the National Pension Fund of South Korea were both reported to hold stocks in Strategy, indirectly participating in Bitcoin investment.
According to Bitcoin Treasuries data, Strategy currently holds 471,000 BTC with a market value of approximately $45.5 billion, making it the largest corporate holder of Bitcoin globally. BlackRock’s increased holdings undoubtedly further solidify the company’s position in the Bitcoin market.
Despite recent fluctuations in the Bitcoin price, BlackRock and Strategy continue to expand their investments in Bitcoin. It is reported that Strategy recognized a digital asset impairment of up to $1 billion in the fourth quarter, but this does not seem to diminish its determination to continue driving the “21/21 Plan,” which aims to increase its capital by $42 billion over the next three years (starting from October 30, 2024), including $21 billion in equity and $21 billion in fixed-income securities for the acquisition of Bitcoin as part of its reserve asset strategy.
So far, MicroStrategy has issued 1.67 billion shares, $3 billion in convertible bonds, and nearly $600 million in preferred shares (classified as fixed income).
On the other hand, BlackRock’s Bitcoin spot ETF (IBIT) has become the 31st largest ETF globally across traditional finance and cryptocurrency, with total assets under management exceeding $56.8 billion, accounting for 48.7% of the total holdings of all Bitcoin spot ETFs in the United States.
It is evident that the inflow of ETFs has made a significant contribution to the increase in Bitcoin prices in 2024. SosoValue data shows that more than $40.6 billion has flowed into Bitcoin, playing a crucial role in the two Bitcoin rallies in March and November last year.
In addition to financial institutions, the interest in Bitcoin continues to grow among various states in the United States. A few days ago, Kentucky became the 16th state in the US to propose Bitcoin reserve-related legislation. Other states, including Oklahoma, Texas, and Pennsylvania, have started to promote Bitcoin legislation to include it in retirement funds and state reserves to address future economic challenges.
These trends indicate that Bitcoin is gradually gaining recognition from the US government and the corporate world, and it may become part of a broader financial system in the future. With increasing acceptance from global institutional investors and US states, its long-term value and market influence will undoubtedly continue to strengthen.
Risk Warning: Cryptocurrency investment carries a high level of risk, and prices may fluctuate dramatically, resulting in the potential loss of all capital. Please carefully assess the risks.
