In a latest development, BlackRock has increased its stake in Michael Saylor’s Strategy, reflecting its growing institutional interest in Bitcoin.
In a Schedule 13G filing, it revealed that it now holds 5% of Strategy (MSTR), or about 11.2 million shares. This is a 0.91% increase from its previous 4.09% stake as of September 30, 2024, according to Yahoo Finance.
After the investment, MicroStrategy’s stock rose 2.8% in pre-market trading to $325 by 12:25 pm UTC on Feb. 7. Notably, Strategy is the world’s largest corporate Bitcoin holder with 471,107 BTC worth around $48 billion.
BlackRock Boosts Stake in Strategy After Rebrand
BlackRock’s increasing stake in Saylor’s company comes just a day after MicroStrategy rebranded as “Strategy” and unveiled a Bitcoin-inspired visual marketing design. Even with Bitcoin dipping below $100,000, both BlackRock and Strategy are continuing their investments in the cryptocurrency.
Despite a $670 million net loss in Q4 2024, Strategy will press ahead with its “21/21 Plan,” aiming to raise $42 billion over the next three years, split between equity and fixed-income securities to buy more Bitcoin. The company has already raised $20 billion of that target, funding its Bitcoin purchases mainly through senior convertible notes and debt.
As of January 31, BlackRock’s Bitcoin exchange-traded fund (ETF) became the 31st-largest ETF globally, including both crypto and traditional finance products, according to VettaFi data. The ETF is the largest Bitcoin fund, with a value exceeding $55.5 billion, controlling over 48.7% of all US spot Bitcoin ETFs, according to Dune data.
ETF investments were crucial in Bitcoin’s 2024 price rally, contributing about 75% of new investments when Bitcoin reclaimed the $50,000 mark on February 15, just under a month after the ETFs’ launch.
Growing Bitcoin Adoption
Bitcoin adoption is growing in the US, with Kentucky recently becoming the 16th state to introduce Bitcoin reserve legislation on Feb. 6. Kentucky’s bill follows a similar move by Illinois, which proposed a Bitcoin reserve strategy with a minimum holding period of five years just a week earlier.
