BlackRock, the world’s largest asset manager, has increased its stake in Michael Saylor’s rebranded firm, Strategy, to 5%, signaling deeper institutional interest in Bitcoin. A filing with the US Securities and Exchange Commission (SEC) on Feb. 6 confirmed the investment, highlighting BlackRock’s growing confidence in Bitcoin-related ventures.
MicroStrategy Stock Reacts to Investment
Following the announcement, Strategy’s stock (formerly MicroStrategy) saw a 2.8% uptick in pre-market trading, reaching $325 as of 12:25 pm UTC on Feb. 7, according to Google Finance. The company remains the largest corporate Bitcoin holder, with 471,107 BTC valued at approximately $48 billion.
BlackRock and Strategy Double Down on Bitcoin
BlackRock’s move comes a day after MicroStrategy officially rebranded to Strategy and launched a Bitcoin-themed marketing campaign. Despite Bitcoin’s recent dip below $100,000, both firms remain committed to accumulating more of the digital asset.
Despite reporting a $670 million net loss in Q4 2024, Strategy is pushing forward with its ambitious “21/21 Plan,” aiming to raise $42 billion over three years through equity and fixed-income securities for additional Bitcoin purchases. So far, the firm has secured $20 billion, largely via senior convertible notes and debt offerings.
BlackRock’s Bitcoin ETF Leads Market
BlackRock’s influence in the Bitcoin market extends beyond Strategy. As of Jan. 31, its Bitcoin exchange-traded fund (ETF) became the world’s 31st-largest ETF across all financial products, boasting over $55.5 billion in assets. According to Dune data, BlackRock’s ETF controls 48.7% of total US spot Bitcoin ETF holdings, making it the largest Bitcoin ETF in existence.
ETF-driven demand played a major role in Bitcoin’s 2024 price surge. When BTC reclaimed the $50,000 mark on Feb. 15, ETF investments accounted for roughly 75% of new capital inflows, underscoring institutional interest in the asset class.
Bitcoin’s Growing Role in State Reserves
Beyond institutional investors, US lawmakers are also considering Bitcoin as a reserve asset. On Feb. 6, Kentucky became the 16th state to propose Bitcoin reserve legislation, potentially paving the way for broader adoption.
“If Kentucky moves forward, it creates a roadmap for others to follow,” said blockchain expert Anndy Lian. “The SEC, the Fed, and even Congress will have to grapple with how to classify Bitcoin in public reserves—commodity, security, or something entirely new?”
Kentucky’s move follows Illinois’ recent proposal for a state Bitcoin reserve, which suggests a minimum BTC holding strategy of five years. As more states explore Bitcoin adoption, regulatory clarity and institutional backing could further solidify Bitcoin’s role in traditional finance.
