BlackRock increases exposure to Strategy as Bitcoin ETF thrives
BlackRock increases exposure to Strategy
BlackRock, the world’s largest asset manager, has increased its stake in Strategy (formerly MicroStrategy) to 5%, according to a Feb. 6 filing with the U.S. Securities and Exchange Commission (SEC).
The move signals BlackRock’s deepening commitment to Bitcoin as its newly launched exchange-traded fund (ETF) continues to attract significant investor capital, according to Crypto News.
The firm now holds approximately 11.2 million shares of Strategy, up from 4.09% in September 2024. Following the disclosure, Strategy’s stock climbed 2.8% in pre-market trading, reaching $331.90 per share.
A growing Bitcoin alliance
Strategy remains the largest corporate holder of Bitcoin, with 471,107 BTC worth approximately $48 billion. Despite reporting a $670 million net loss in Q4 2024, the company is forging ahead with its “21/21 Plan,” which aims to raise $42 billion for further Bitcoin acquisitions. So far, it has secured $20 billion through debt and equity financing.
BlackRock’s investment comes as the firm prepares to launch its first Bitcoin exchange-traded product in Europe, following the success of its $58 billion spot Bitcoin ETF in the U.S. Since its debut in January 2024, the iShares Bitcoin Trust has become the largest of its kind, amassing over $50 billion in assets.
CEO Larry Fink, once a skeptic of cryptocurrencies, has publicly endorsed Bitcoin as a hedge against currency devaluation and an essential component of diversified investment portfolios. BlackRock now advises institutional investors to allocate 1% to 2% of their portfolios to Bitcoin, highlighting its potential benefits without excessive risk.
With BlackRock strengthening its position in Strategy, both firms appear poised to further cement their influence in the evolving digital asset landscape.
BlackRock, the world’s largest asset manager with $11.5 trillion under management, has recommended allocating 1% to 2% of portfolios to Bitcoin (BTC) for some investors. The suggestion, part of a new report on multi-asset portfolios, marks a major endorsement from the financial giant.
