BlackRock Boosts Bitcoin Holdings, Invests $1B

BlackRock has made a major move in the Bitcoin market, reportedly buying over $1 billion worth of Bitcoin last week. Data from Arkham Intelligence reveals that BlackRock is making consistent daily BTC purchases, often in transactions of 600 BTC each. This spree included a significant $300 million investment on Monday, adding 4,369 BTC to BlackRock’s holdings. The firm now holds a total of 399,525 BTC, cementing its influence in the cryptocurrency market, though it still trails Binance’s 667,526 BTC.

In addition to its direct Bitcoin acquisitions, BlackRock has been expanding its investments in Bitcoin-related assets. Notably, it increased its stake in MicroStrategy to 5.2%, strengthening ties with one of the leading corporate Bitcoin investors. MicroStrategy, although not an ETF issuer, is deeply connected to Bitcoin’s value, as it holds substantial BTC assets on its balance sheet. Bloomberg ETF analyst Eric Balchunas has noted that BlackRock’s investment approach to MicroStrategy gives it exposure similar to a high-leverage Bitcoin ETF, as MicroStrategy’s price movements often mirror Bitcoin’s volatility, though to a slightly lesser extent.

BlackRock’s Bitcoin ETF, IBIT, is also gaining traction, leading October inflows among Bitcoin ETFs. This success underscores CEO Larry Fink’s vision of Bitcoin as a unique asset class. Fink has become an advocate for Bitcoin’s potential, with BlackRock’s consistent acquisitions supporting his stance. BlackRock’s IBIT ETF has attracted strong interest, reflecting growing demand for Bitcoin exposure among traditional investors.

The firm’s strategic investment in both Bitcoin and Bitcoin-related companies like MicroStrategy demonstrates BlackRock’s deep commitment to the cryptocurrency. As BlackRock continues its steady buying pattern, it is set to become one of the largest institutional Bitcoin holders. By diversifying its portfolio with both direct Bitcoin purchases and shares in Bitcoin-centric corporations, BlackRock is signaling its belief in Bitcoin’s long-term value and potential within mainstream finance.