BlackRock Loads up $536 million of Strategy Shares

Key Insights

• BlackRock loads up $536 million of Strategy shares and now holds a total of 17.75 million shares
• Strategy remains the largest corporate holder of Bitcoin and is eyeing more purchases.
• Institutional investors continue to accumulate MSTR despite Bitcoin’s recent decline.

Asset management firm BlackRock has bought $536 million worth of Strategy (formerly MicroStrategy) shares. Asset management firm BlackRock disclosed its latest stock acquisition. The firm boosted its stake in MicroStrategy by adding another 3.14 million MSTR shares to its holdings.

With the purchase, BlackRock now owns 17.75 million MSTR shares, valued at over $3 billion. The firm’s latest disclosure increases its holdings by 21.5%. This aggressive move signals strong conviction in the Bitcoin treasury company.

Strategy Eyeing More Bitcoin Purchase Even as It Remains Largest Holder

BlackRock, the world’s largest asset manager, holds roughly $14 trillion in assets under management. The firm’s heavy accumulation of MSTR shares creates a highly intriguing market scenario.

BlackRock is also the issuer of IBTC, the largest spot Bitcoin ETF with a market cap of $64 billion. By also buying up more MSTR stock, the asset manager is doubling down on exposure to Bitcoin through multiple instruments.

Interestingly, Strategy recently overtook BlackRock IBIT in Bitcoin holdings in April, after a purchase of 34,160 BTC. That brought its holdings to 815,061 BTC. IBIT currently has its AUM at 817,138.19 BTC.

The firm continued its aggressive Bitcoin buying streak. According to Bitcoin Treasuries, it reportedly acquired an estimated 25,128 Bitcoin last week through an ATM program. The actual amount will be confirmed in its regulatory filing on Monday

The company funds its Bitcoin acquisitions using proceeds from its preferred stock, STRC. Public records show that the firm currently holds 818,869 Bitcoin. Following Monday’s regulatory filing, the BTC holdings increased to 843,738 BTC.

The closest company to Strategy is Twenty One Capital. It has only 43,514 Bitcoin and has not bought more in a while.

MSTR Stock Falls Amidst Bitcoin Decline Despite Strong Institutional Interest

Meanwhile, it is not only BlackRock that is buying Strategy shares. Other institutional investors have also been accumulating MSTR.

Norway’s pension manager, KLP Kapitalforvaltning, recently bought a $20.5 million MSTR stake. This latest purchase successfully increased its total holding to 104,680 shares.

Canadian investment manager Alberta Investment Management Corporation (AIMCo) also purchased 1.38 million MSTR shares. The firm spent $219 million on this transaction in late April.

It was its first purchase of the Bitcoin treasury company. Vanguard Group also doubled its stake in Straregt to over 2 million shares

Still, the largest recent purchase has been Capital Group. They acquired 4.32 million MSTR shares for $747 million for its American Funds Fundamental Investors (ANCFX) fund. The fund owns 10.33 million shares.

Despite strong institutional interest and BlackRock’s bearish stance, MSTR closed on Friday with a 5.11% decline. It has lost a further 2.77% in pre-market trading, falling to $172.56.

The decline is mostly due to Bitcoin’s massive price correction after trading around $80,000 for about three weeks. The flagship asset has lost 4.75% over the past seven days, dropping to $76,000.

Bitcoin price decline dispelled any hopes of a turnaround in the bear market. Other crypto assets have also seen a sharp decline in value, with the Crypto Fear & Greed Index dropping to 39. That indicates Fear.

MSTR’s medium-term performance easily outpaces Bitcoin’s current gains. The stock jumped 23.6% over the past month and trades up 16.76% year to date.

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