BlackRock Boosts Stake in Strategy to 5%, Signaling Crypto Interest

BlackRock, the world's largest asset manager, has bolstered its stake in Strategy, formerly known as MicroStrategy, by increasing its ownership to 5% from 4.09%. According to a 13G filing with the U.S. Securities and Exchange Commission (SEC), BlackRock purchased an additional 1.78 million shares, bringing its total to 11.26 million. The value of BlackRock's investment in Strategy now exceeds $3.67 billion, with the 1.78 million shares bought at an estimated cost of around $584 million, given the current market price of approximately $325 per share.

This strategic move by BlackRock strengthens its influence in Strategy and signals its interest in the growing intersection of traditional finance and cryptocurrency. Although the specifics of the purchase are unclear, it suggests a long-term investment strategy, with BlackRock likely attracted to Strategy's substantial Bitcoin holdings as a means of diversifying its investments and appealing to more institutional investors.

BlackRock's recent Bitcoin accumulation is notable. In December, the asset manager acquired 7,750 Bitcoin (BTC), bringing its total holdings to $48.9 billion. Additionally, BlackRock's iShares Bitcoin Trust (IBIT) became the fastest ETF to surpass $50 billion in assets under management (AUM), achieving this milestone in just 228 days. This rapid growth underscores a significant shift in Bitcoin's role within institutional portfolios.

Strategy, a software intelligence firm, continues to double down on its Bitcoin accumulation strategy. Recently, the Virginia-based company announced plans to raise $563 million through a Perpetual Strike Preferred Stock (STRK) offering, aligning with its aggressive Bitcoin accumulation efforts. Over the past four years, Strategy has employed various financial tools to purchase Bitcoin, including convertible notes and direct stock offerings. In the most recent transaction, Strategy bought 10,107 BTC valued at $1.1 billion, marking twelve weeks of aggressive Bitcoin purchases. Following this transaction, Strategy announced a $1.05 billion offering, with another $563 million incoming, indicating no signs of slowing down in its cryptocurrency investment strategy.