BlackRock’s Increased Investment in Strategy: What Does It Mean?
BlackRock, the world’s largest asset manager with over $11.6 trillion in assets under management, has significantly raised its stake in Michael Saylor’s Bitcoin-focused company, Strategy. According to a U.S. Securities and Exchange Commission (SEC) filing on February 6, BlackRock now holds a 5% stake in the company, up from 4.09% at the end of the third quarter of 2024. This increase in ownership equates to nearly 11.2 million shares of Strategy, which is known for holding the largest corporate Bitcoin reserve globally.
Bitcoin Price Boost After BlackRock’s Announcement
Following the announcement of BlackRock’s increased investment, Strategy’s share price surged by over 2.8% in pre-market trading, reaching $339. This increase signals strong investor confidence in both BlackRock’s decision and Strategy’s Bitcoin-heavy portfolio.
Strategy, previously known as MicroStrategy, currently owns 471,107 BTC, valued at approximately $48 billion. Despite Bitcoin’s price fluctuations, even dipping below $100,000, Strategy has continued to expand its Bitcoin holdings as part of its ongoing commitment to cryptocurrency investment.
As part of its evolving strategy, the company also rebranded to emphasize its focus on Bitcoin. On February 5, Strategy launched a Bitcoin-themed marketing campaign to align its identity more closely with the growing importance of Bitcoin in its business model.
Strategy’s Financials and Long-Term Bitcoin Plans
Despite facing challenges, including a $670 million net loss in the previous year, Strategy remains committed to its ambitious “21/21 Plan.” This plan aims to accumulate up to $42 billion in Bitcoin over the next three years. To achieve this target, the company has already raised $20 billion through debt and senior convertible notes to fund its Bitcoin purchases.
BlackRock’s Dominance in the Bitcoin ETF Market
BlackRock has also cemented its position as a leading player in the Bitcoin investment space through its iShares Bitcoin Trust (IBIT). As one of the largest Bitcoin exchange-traded funds (ETFs), IBIT was the 31st-largest ETF globally as of January 31, 2024, with a market value of over $55.5 billion. Additionally, IBIT controls 48.7% of the cumulative holdings of all U.S. spot Bitcoin ETFs, highlighting its significant role in the growing Bitcoin investment landscape.
