BlackRock Ramps Up Bitcoin Buys, Invests in MicroStrategy

BlackRock bought $1 billion in Bitcoin last week, according to trading data, with an additional $300 million purchased on Monday.

The asset manager has also invested in MicroStrategy, signaling a deepening connection with the BTC market.

BlackRock’s Bitcoin Strategy

According to Arkham Intelligence data , BlackRock purchased $1 billion worth of Bitcoin in the last week. Its current total holdings sit at 399,525 BTC, which is a substantial amount, but nonetheless a far cry from Binance’s 667,526. Arkham’s data shows that BlackRock has been buying BTC steadily throughout each day, typically in 600 BTC transactions.

Read more: Who Owns the Most Bitcoin in 2024?

BlackRock has gone on a Bitcoin buying spree this October , initially purchasing $680 million worth of the asset over two days before shifting to a steady acquisition plan. Its Bitcoin ETF, IBIT, led October ETF inflows , reflecting the success of BlackRock’s deep BTC investments. CEO Larry Fink has endorsed Bitcoin as a distinct asset class and remains a strong supporter.

This pattern of major purchases by BlackRock shows no sign of slowing. Data from Lookonchain reveals that on Monday, BlackRock invested another $300 million into BTC, acquiring 4,369 coins. This accounted for the majority of Bitcoin bought by all ETF issuers on October 28.

However, BlackRock is also diversifying its Bitcoin-centric investment strategies. Last week, it expanded its stake in MicroStrategy to 5.2%. MicroStrategy may not be an ETF issuer, but it is also a leading corporate investor in Bitcoin , and their values are closely tied.

“T-Rex’s 2x Microstrategy ETF…is essentially a 4x Bitcoin ETF. It’s 30 day volatility is 168%; IBIT’s is 41%. It’s notable because you can’t launch a 4x Bitcoin ETF…but by [doubling] MicroStrategy, they effectively created the ultimate degenerate trading tool,” Bloomberg ETF analyst Eric Balchunas stated .

BlackRock’s investment in MicroStrategy carries less volatility than an ETF tied to Bitcoin’s valuation. However, it remains a relevant comparison, especially as Balchunas directly compared MicroStrategy’s volatility and returns to BlackRock’s IBIT. With Bitcoin’s recent strong performance , BlackRock’s involvement has helped drive MicroStrategy’s stock to a 24-year high.

Read more: What Is a Bitcoin ETF?

In conclusion, BlackRock has displayed a deep affinity towards continued BTC investment. The firm has been buying astronomical quantities of the asset on an elongated timeline. Besides this, it’s also been making major investments into Bitcoin-adjacent properties like MicroStrategy. On this trajectory, BlackRock is growing into one of the largest Bitcoin holders.