BlackRock doubles down on Bitcoin with a 5% stake in Strategy

• Bitcoin failed to rally as BlackRock increased its stake in Strategy (formerly MicroStrategy), according to a filing with the SEC.
• The asset manager now holds 11.2 million shares of Strategy's stock, commanding a 5% ownership of the company.
• BlackRock could be aiming to indirectly leverage Strategy's Bitcoin buying tactic to expand its BTC exposure.

Bitcoin (BTC) is trading near $96,000 on Friday following asset manager BlackRock increasing its ownership stake in Strategy (formerly MicroStrategy) to 5%. The move indirectly expands BlackRock's exposure in the top digital asset as Strategy is the world's largest corporate Bitcoin holder.

BlackRock sizes up on Strategy shares with 5% ownership

BlackRock, which manages more than $11.6 trillion in assets, disclosed in a Thursday filing with the Securities & Exchange Commission (SEC) that it expanded its stake in Strategy (formerly MicroStrategy) to 5%.

The filing reveals that BlackRock now owns 11.2 million shares of Strategy's common stock, up from 9.4 million in September, according to data from Yahoo Finance.

The additional purchase comes as Strategy rebranded from MicroStrategy in a bid to emphasize its "focus and broad appeal." This includes its playbook of issuing debts and raising funds to acquire Bitcoin and a new logo that captures the BTC symbol.

The additional purchase could imply that BlackRock may want to leverage Strategy's shares to indirectly expand its BTC exposure — even though it already has a large BTC holding through the iShares Bitcoin Trust (IBIT).

BlackRock's iShares Bitcoin Trust fund (IBIT) is the largest Bitcoin-based product, worth $56 billion and commanding a market share of 48%, per Dune analytics data.

Meanwhile, Strategy paused its 12-week aggressive Bitcoin buying spree last week after purchasing 218,887 BTC for over $20 billion between October and January, solidifying its position among corporate Bitcoin holders.

Strategy now holds 471,107 BTC worth over $46 billion. The company intends to resume its Bitcoin purchases as part of its 21/21 plan to raise $42 billion within three years to increase its BTC holdings.

Despite its BTC gains, Strategy recorded a 3% YoY revenue decline to $120 million and a net loss of $670 million in Q4 2024.