Asset management giant BlackRock recently increased its stake in Strategy, led by Michael Saylor, to 5%, further strengthening its interest in Bitcoin. This increase coincided with MicroStrategy’s rebranding as Strategy and adoption of a Bitcoin-themed brand image.
According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on February 6, BlackRock has raised its ownership stake in Strategy (formerly MicroStrategy) to 5%, demonstrating its growing institutional interest in Bitcoin. However, this investment news does not seem to have had a significant impact on Strategy’s stock price (MSTR), which has remained between $320 and $325.
Previously, it was revealed that the Norwegian Sovereign Wealth Fund and the National Pension Service of Korea held shares in Strategy, indirectly participating in Bitcoin investments.
According to Bitcoin Treasuries data, Strategy currently holds 471,000 BTC, with a market value of about $45.5 billion, making it the largest corporate Bitcoin holder globally. BlackRock’s increase in its stake undoubtedly further consolidates the company’s position in the Bitcoin market.
Despite multiple fluctuations in the price of Bitcoin recently, surpassing the $100,000 mark, both 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.” The goal is 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, used for Bitcoin acquisitions as part of its reserve asset strategy.
So far, MicroStrategy has issued 1.67 billion shares, 300 million convertible bonds, and nearly 600 million 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 assets under management exceeding $56.8 billion, accounting for 48.7% of the total holdings of 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 over $40.6 billion has flowed in, playing a crucial role in Bitcoin’s two surges in March and November last year.
In addition to financial institutions, interest in Bitcoin is also growing among various states in the United States. A few days ago, Kentucky became the 16th state in the U.S. to propose Bitcoin reserve-related legislation. Other states, including Oklahoma, Texas, and Pennsylvania, have started promoting 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 U.S. government and the corporate world, and may become part of a broader financial system in the future. With increasing acceptance from global institutional investors and U.S. states, its long-term value and market influence will undoubtedly continue to strengthen.
Risk Warning: Cryptocurrency investments are highly risky, and prices may fluctuate dramatically, resulting in potential loss of all invested capital. Please carefully assess the risks.