BlackRock, the world’s largest asset manager, has raised its stake in Strategy (formerly MicroStrategy) to 5%, reinforcing confidence in its Bitcoin-focused approach. This move, revealed in a recent SEC filing, highlights BlackRock’s increasing exposure to Bitcoin without directly purchasing the asset.
A Calculated Bet on Bitcoin
Strategy has positioned itself as a corporate Bitcoin giant, holding over 490,000 BTC, worth more than $46 billion. By increasing its stake, BlackRock is indirectly betting on Bitcoin’s long-term value through an established stock rather than direct ownership.
The firm’s stake in Strategy rose from 4.09% to 5%, amounting to an additional $584 million investment, bringing its total ownership to $3.67 billion. Given Strategy’s aggressive Bitcoin strategy, BlackRock’s investment signals strong institutional confidence in the future of digital assets.
Holding equity in Strategy provides BlackRock with regulated exposure to Bitcoin without the complexities of direct ownership, such as custody risks and regulatory concerns. This aligns with BlackRock’s broader crypto ambitions, including its iShares Bitcoin Trust (IBIT), a Bitcoin ETF that has amassed over $50 billion in assets.
Institutional Adoption: Bitcoin’s Growing Legitimacy
While this move suggests strong faith in Bitcoin, investing in Strategy is not without risks. The company reported a $670.8 million net loss in Q4 2024, reflecting the volatility of its Bitcoin accumulation strategy. However, long-term investors may view this as a tradeoff for potential high returns, especially if Bitcoin continues to gain value.
BlackRock’s decision represents a shift in how traditional finance views Bitcoin. Once dismissed as speculative, Bitcoin is now becoming a serious asset class, attracting major institutional players. If this trend continues, Bitcoin could see greater adoption, stability, and acceptance in global markets.
Conclusion: A New Era for Bitcoin?
Instead of buying Bitcoin directly, BlackRock is leveraging Strategy to gain exposure while remaining within traditional stock markets. This move, combined with the success of IBIT, suggests that Bitcoin’s place in global finance is solidifying. BlackRock’s increasing stake could pave the way for more institutional investment, further legitimizing Bitcoin as an asset class.
