BlackRock has increased its stake in Michael Saylor’s Strategy, reinforcing its growing institutional interest in Bitcoin.
BlackRock, the world’s largest asset manager with over $11.6 trillion in assets under management, has increased its stake in Strategy to 5%, according to a Feb. 6 filing with the US Securities and Exchange Commission.
BlackRock filing. Source: SEC
Following the investment, MicroStrategy’s stock price rose by more than 2.8% in pre-market trading to change hands at $325 as of 12:25 pm UTC on Feb. 7, Google Finance data shows.
Strategy, 1-day chart, Source: Google Finance
Strategy is the world’s largest corporate Bitcoin (BTC) holder with 471,107 BTC worth around $48 billion.
BlackRock’s growing stake in Saylor’s company comes a day after MicroStrategy rebranded to Strategy and adopted a Bitcoin-themed visual marketing scheme, Cointelegraph reported on Feb. 5.
Related: MicroStrategy may owe taxes on $19B unrealized Bitcoin gains: Report
BlackRock, Strategy, continue increasing Bitcoin exposure
Both BlackRock and Strategy continue investing in Bitcoin, despite a recent BTC correction below $100,000.
Despite sustaining a $670 million net loss in the fourth quarter of 2024, Strategy will continue executing its “21/21 Plan,” targeting $42 billion in capital over the next three years, split between equity and fixed-income securities to buy more Bitcoin.
Strategy said it has already raised $20 billion of that $42 billion, fueling its Bitcoin buying spree largely through senior convertible notes and debt.
As for BlackRock, its Bitcoin exchange-traded fund (ETF) became the world’s 31st-largest ETF among all ETFs, including crypto and traditional finance products, on Jan. 31, according to data from VettaFi.
World’s largest ETFs. Source: ETF Database
BlackRock is the largest Bitcoin ETF worth over $55.5 billion, controlling over 48.7% of the cumulative holdings of all US spot Bitcoin ETFs, Dune data shows.
US Bitcoin ETFs, Market share. Source: Dune
ETF investments were a significant element in Bitcoin’s 2024 price rally, accounting for about 75% of new investment when it recaptured the $50,000 mark on Feb. 15, less than a month after the ETFs’ debut.
Related: Bitcoin finds local bottom at $91K amid global trade war concerns
Bitcoin adoption is growing in the US, as 16th state pushes for BTC reserve
Beyond financial institutions, US lawmakers are increasingly considering adopting Bitcoin as a savings technology. Kentucky became the 16th state to introduce a Bitcoin reserve-related legislation on Feb. 6, Cointelegraph reported.
“If Kentucky moves forward, it creates a roadmap for others to follow,” Anndy Lian, author and intergovernmental blockchain expert, told Cointelegraph, adding:
“The SEC, the Fed, and even Congress will have to grapple with how to classify Bitcoin in public reserves — is it a commodity? A security? Something entirely new?”
Kentucky’s bill comes a week after the state of Illinois announced plans for a Bitcoin reserve bill that proposed a minimum BTC holding strategy of five years.
Magazine: BTC above $150K is ‘speculative fever,’ SAB 121 canceled, and more: Hodlers Digest, Jan. 19 – 25