BlackRock Now Owns 5% of Strategy (MSTR) as Bitcoin Bets Grow

BlackRock has increased its investment in Michael Saylor’s newly rebranded company, Strategy, highlighting its growing confidence in Bitcoin.

A recent Schedule 13G filing reveals that BlackRock now holds a 5% stake in Strategy (MSTR), totaling 11.2 million shares. This marks a 0.91% increase from its previous 4.09% stake as of September 30, 2024, according to Yahoo Finance.

Following the news, MicroStrategy’s stock climbed 2.8% in pre-market trading, reaching $325 by 12:25 PM UTC on February 7. Strategy remains the largest corporate holder of Bitcoin, owning 471,107 BTC – worth around $48 billion.

A Strong Commitment to Bitcoin

BlackRock’s growing stake comes just a day after MicroStrategy rebranded as “Strategy” and introduced a Bitcoin-themed visual identity. Despite Bitcoin dipping below $100,000, both BlackRock and Strategy continue to invest heavily in the cryptocurrency.

Even after posting a $670 million net loss in Q4 2024, Strategy remains focused on its “21/21 Plan.” The company aims to raise $42 billion over three years, split between equity and fixed-income securities, to buy more Bitcoin. So far, it has secured $20 billion, funding purchases mainly through senior convertible notes and debt.

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BlackRock’s Bitcoin ETF Leads the Market

As of January 31, BlackRock’s Bitcoin exchange-traded fund (ETF) ranked as the 31st-largest ETF globally, covering both crypto and traditional finance, per VettaFi data. It remains the largest Bitcoin ETF, managing over $55.5 billion and controlling 48.7% of all U.S. spot Bitcoin ETFs, according to Dune Analytics.

Bitcoin ETFs played a major role in the crypto’s 2024 price rally, contributing to 75% of new investments when Bitcoin reclaimed $50,000 on February 15, just weeks after the ETFs launched.

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.