BlackRock Increases it’s Investment in MicroStrategy

BlackRock Increases It’s Stake in Michael Saylor’s MicroStrategy to 5%

• The world’s largest asset manager, BlackRock, has raised its stake in Strategy to 5%, signaling growing institutional interest in Bitcoin.
• The investment was disclosed in a U.S. Securities and Exchange Commission (SEC) filing on February 6.
• BlackRock manages over $11.6 trillion in assets, making this move a notable endorsement of Bitcoin-related investments.

Market Reaction and Strategy’s Position

• Following the announcement, Strategy’s stock price climbed 2.8% in pre-market trading, reaching $325, according to Google Finance.
• Strategy, formerly known as MicroStrategy, is the world’s largest corporate holder of Bitcoin, possessing 471,107 BTC valued at around $48 billion.
• This investment comes just a day after the company rebranded from MicroStrategy to Strategy, aligning itself more closely with Bitcoin.

BlackRock and Strategy Continue Bitcoin Accumulation

• Despite Bitcoin’s price correction below $100,000, both BlackRock and Strategy remain committed to increasing their BTC holdings.
• Strategy is pushing forward with its “21/21 Plan,” which aims to raise $42 billion over the next three years through equity and fixed-income securities to buy more Bitcoin.
• The company has already secured $20 billion towards this goal, mainly through senior convertible notes and debt financing.

BlackRock’s Bitcoin ETF Dominance

• BlackRock’s Bitcoin exchange-traded fund (ETF) has rapidly grown to become the 31st-largest ETF globally, across both crypto and traditional finance markets.
• As of January 31, BlackRock’s Bitcoin ETF holds over $55.5 billion in assets, controlling nearly 48.7% of all U.S. spot Bitcoin ETFs.
• ETF-driven investments were a major force behind Bitcoin’s 2024 price surge, accounting for about 75% of new investment when BTC crossed $50,000 in February.

Growing Bitcoin Adoption in the U.S.

• Bitcoin adoption isn’t limited to financial institutions; U.S. lawmakers are also considering BTC as a financial reserve.
• Kentucky recently became the 16th state to introduce legislation for holding Bitcoin reserves.
• If passed, the bill could serve as a model for other states, further legitimizing Bitcoin as an asset class.
• Illinois also introduced a similar proposal, suggesting a minimum BTC holding strategy for at least five years.