BlackRock Now Owns 5 % Of Strategy Strengthening Its Bitcoin Play

The world of traditional finance is increasingly intertwined with that of bitcoin, and the recent moves by BlackRock only confirm this dynamic. Indeed, the asset management giant, with its $11.6 trillion in assets under management, has just increased its stake in MicroStrategy, renamed Strategy, to 5 %. This rise to prominence does not go unnoticed: it comes as Strategy continues to massively accumulate bitcoin, in order to strengthen its role as a pioneer among publicly traded companies. More than just a simple investment, this strategic approach raises questions about the future of bitcoin in institutional portfolios and the place giants like BlackRock wish to occupy in this rapidly expanding ecosystem.

BlackRock strengthens its game and bets on Strategy

The announcement had an immediate effect on the markets. Following the declaration of BlackRock to the U.S. Securities and Exchange Commission (SEC), Strategy’s shares surged by 2.8 % in pre-market trading, reaching $325. The interest of the world’s largest asset manager in Michael Saylor’s firm is not trivial: Strategy currently holds 471,107 BTC, equivalent to about $48 billion in bitcoin. This investment thus confirms BlackRock’s strategy of increasing exposure to crypto, following the resounding success of its Bitcoin ETF.

The identity change of MicroStrategy to Strategy, carried out a few days before the announcement, also seems to play a key role in this dynamic. By adopting a visual communication focused on bitcoin, the company is more determined than ever to assert itself as an essential institutional vehicle for investing in the leading crypto. This timing raises questions: is it a mere coincidence or a calculated strategy to attract large investment funds?

A long-term vision despite financial losses

While BlackRock’s interest in Strategy is a strong signal for the bitcoin market, it does not erase the challenges faced by Michael Saylor’s firm. The company has indeed reported a net loss of $670 million in the fourth quarter of 2024, a figure that could worry some investors. However, far from revising its strategy, Strategy continues its 21/21 plan, an ambitious program aimed at raising $42 billion over three years to acquire more bitcoin.

Out of these $42 billion, $20 billion have already been raised, notably through the issuance of convertible debt and other financial instruments. This massive debt policy, driven by unwavering confidence in the future appreciation of bitcoin, raises questions about the associated risks. Can one indefinitely finance the purchase of BTC through debt without fearing a sudden market reversal? Meanwhile, BlackRock continues to expand its influence over bitcoin, as its spot Bitcoin ETF now represents 48.7% of all bitcoin ETF assets in the United States, with $55.5 billion in assets under management.

The rise of Bitcoin ETFs fuels a growing institutional adoption, with some U.S. states even starting to view bitcoin as a strategic asset. Thus, Kentucky has now become the 16^th U.S. state to propose legislation in favor of a bitcoin reserve, illustrating an adoption that now goes beyond just private investors. In this context, BlackRock’s increased stake in Strategy appears as an additional step in the consolidation of bitcoin within the global financial system. It remains to be seen whether this frantic accumulation strategy can withstand market volatility and potential regulatory interventions.