BlackRock MicroStrategy Hold 6.18% of Bitcoin Supply

BlackRock and MicroStrategy have collectively amassed a significant portion of the Bitcoin supply, holding 1,297,325 bitcoins, valued at approximately $140.8 billion. This figure represents roughly 6.18% of the total Bitcoin supply, a substantial concentration that has sparked discussions about market dynamics and potential implications for Bitcoin's price.

MicroStrategy, led by Michael Saylor, holds over 597,000 bitcoins, valued at around $63 billion. This makes MicroStrategy one of the largest corporate holders of Bitcoin. BlackRock, through its iShares Bitcoin Trust (IBIT), manages $75 billion in Bitcoin, further solidifying its position as a major player in the cryptocurrency market. The combined holdings of these two entities underscore their strategic interest in Bitcoin and their belief in its long-term value.

BlackRock’s IBIT ETF has quickly climbed to the third spot among BlackRock’s top revenue generators. It now holds 3.335% of the total 21 million BTC that will ever exist. On July 3rd, IBIT hit 698,919 BTC. By July 7th, a net inflow of 1,388 BTC pushed it past the 700,000 mark. At current prices, IBIT manages around $75.5 billion in BTC. Moreover, it accounts for nearly 55% of all Bitcoin held across US-based ETFs. Besides IBIT’s large share, an additional 550,000 BTC sits within other US spot ETFs. That makes BlackRock the clear leader in this space. IBIT now competes with BlackRock’s top two funds, trailing by just $9 billion. At its current pace, it could take the top spot very soon.

Additionally, demand outstrips Bitcoin’s supply. US spot ETFs and MicroStrategy together purchased over $28.2 billion worth of BTC this year. Meanwhile, miners only issued $7.85 billion in the same period. Hence, the rate of accumulation has outpaced new supply. Exchanges now hold just 2.11 million BTC. Once this drops below 2 million, Bitcoin may exit its consolidation phase. Consequently, a rally could follow due to tightening supply.

The concentration of such a large portion of the Bitcoin supply in the hands of a few entities raises questions about market dynamics and potential risks. While these holdings reflect confidence in Bitcoin's future, they also highlight the potential for market manipulation and the need for regulatory oversight. The actions of BlackRock and MicroStrategy could influence market sentiment and price movements, given their significant holdings.

The financial community is closely watching these developments, as the actions of major institutional investors can have far-reaching effects on the broader cryptocurrency market. The involvement of BlackRock, a traditional financial giant, in the Bitcoin space adds legitimacy to the cryptocurrency and could attract more institutional investors. However, it also raises concerns about the decentralization of Bitcoin, a core principle of the cryptocurrency.

In summary, the combined holdings of BlackRock and MicroStrategy represent a significant portion of the Bitcoin supply, reflecting their strategic interest in the cryptocurrency. While this concentration of holdings raises questions about market dominance and potential risks, it also underscores the growing acceptance of Bitcoin by institutional investors. The financial community will continue to monitor these developments closely, as they could have significant implications for the future of Bitcoin and the broader cryptocurrency market.