BlackRock submitted a Feb. 6 document to the U.S. Securities and Exchange Commission demonstrating how it acquired enough shares to hold 5% ownership in Strategy (previously known as MicroStrategy).
BlackRock holds 11.2 million shares which give them 5% stake in the company’s ownership following their recent September share increase from 4.09% to 5%. Shares of Strategy rose by $0.90 to $331.90 per share before market start after the announcement was made public.
BlackRock Boosts Bitcoin Investments
Strategy holds the title as the biggest corporate Bitcoin owner after acquiring 471,107 BTC worth about $48 billion. The company maintains its Bitcoin acquisition drive under the “21/21 Plan” despite reporting a $670 million net loss during Q4 2024 because it continues efforts to raise $42 billion dollars to buy more Bitcoin. When it comes to debt and equity financing the company has managed to obtain $20 billion until present day.
The company rebranded to enhance its status as the top Bitcoin treasury organization. BlackRock is building its Bitcoin product range while planning to bring its European Bitcoin exchange-traded product (ETP) to market. The planned Swiss-based fund will start marketing activities in the current month according to projections. BlackRock expanded its Bitcoin ETF business with the U.S. product that drew $58 billion assets after its launch.
During the previous year the company has sharply grown its investments in Bitcoin. Early this year the iShares Bitcoin Trust was launched as a new spot Bitcoin exchange-traded fund which presently represents the market’s largest solution and has drawn more than $50 billion in assets.
BlackRock Chief Executive Larry Fink evolved his opinion by recognizing Bitcoin as an instrument that safeguards against monetary depreciation while serving as an essential portfolio expansion element. According to BlackRock the investment recommendation for Bitcoin includes allocating between 1% to 2% of investors’ total portfolio assets for diversification benefits that do not heavily increase risk levels.
The increased participation of BlackRock demonstrates institutional sector interest in Bitcoin at the same time that Strategy deepens its position as an industry leader for corporate Bitcoin use. Traditional finance shows an increasing momentum for Bitcoin adoption as these firms consolidate their market positions.
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