Bitcoin News Today: BlackRock's 5% Strategy Stake Fuels Bitcoin Market Centralization Concerns

BlackRock’s 5% stake in Strategy (formerly MicroStrategy) is redefining the landscape of the Bitcoin market, as institutional influence continues to expand. In early 2025, BlackRock increased its equity position in the company to 5%, valued at over $3.6 billion, granting it ownership of more than 11.2 million shares. Strategy, in turn, holds one of the largest Bitcoin portfolios in the world, with holdings rising from 471,107 BTC in January 2025 to 628,946 BTC by August 2025, valued at over $72 billion. This represents nearly 3% of the total circulating Bitcoin supply [1].

The strategic alignment between BlackRock and Strategy has intensified concerns about Bitcoin’s decentralization. With a combined influence over a significant portion of the supply and ongoing institutional buying, the market is becoming increasingly concentrated. Strategy’s aggressive acquisition of Bitcoin, including a recent $2.46 billion purchase in early August 2025, has further tightened the supply, reducing the amount of Bitcoin available on open exchanges to just 14.5% of the total supply, the lowest level since 2018 [2].

This shift is not only reflected in asset control but also in market dynamics. Bitcoin prices reached a new all-time high of $124,000 in early August 2025, fueled by ETF inflows and investor confidence. BlackRock’s own Bitcoin ETF contributed to this momentum, signaling broader institutional adoption. Total institutional Bitcoin holdings surpassed $414 billion by mid-August 2025, highlighting the growing dominance of large players in the ecosystem [1].

However, the implications go beyond price movements. The increasing influence of a few entities raises critical questions about the future of Bitcoin’s decentralized model. While Bitcoin was designed to resist centralized control, the power held by BlackRock and Strategy could alter how the market functions. Any shift in strategy—whether through increased buying, a pause, or even a sell—could trigger significant market volatility [1].

The crypto community is now grappling with the tension between institutional growth and foundational principles of decentralization. Retail investors, developers, and miners are all recalibrating their strategies in light of this evolving dynamic. While the market remains bullish, the centralizing influence of major institutions like BlackRock and Strategy cannot be ignored. This power shift may ultimately shape the trajectory of Bitcoin’s future in ways that challenge its original intent [1].

Source: [1] Why BlackRock 5% Stake in Strategy Could Reshape Bitcoin Market, https://thebitjournal.com/blackrock-microstrategy-bitcoin-power-crypto/