BlackRock Increases Stake in Michael Saylor’s Strategy to 5%

BlackRock has increased its stake in Michael Saylor’s Bitcoin-focused company, Strategy, to 5%, according to a filing with the U.S. Securities and Exchange Commission (SEC) on February 6. 

BlackRock filing | Source: Sec.gov

This is a huge jump from the 4.09% stake BlackRock held at the close of the third quarter of 2024. The firm, which is the largest asset manager globally, with more than $11.6 trillion under management, now has nearly 11.2 million shares of Strategy, which is known for holding the biggest corporate Bitcoin reserve globally.

After this investment was announced, Strategy’s share price immediately climbed over 2.8% in pre-market trading, reaching $339. 

Strategy’s daily price chart | Source: Google Finance

Strategy presently owns 471,107 BTC, valued at around $48 billion. The company has been actively developing its Bitcoin position, even with the price dropping below $100,000.

This news is coming right after Strategy’s renaming its brand to a Bitcoin-focused brand name. It was formerly known as MicroStrategy. On February 5, the company rolled out a Bitcoin-themed marketing campaign as part of its shift.

The software company ended up with a $670 million net loss last year but is still trying to reach its “21/21 Plan” goal, which is to meet its target sum of up to $42 billion over the next three years by making more Bitcoin purchases. The strategy has already raised $20 billion of the target via the use of debt and senior convertible notes to power its Bitcoin buying spree

Meanwhile, BlackRock emerged as one of the top Bitcoin investment platforms through its iShares Bitcoin Trust (IBIT), which is currently one of the largest Bitcoin exchange-traded funds (ETFs).

BlackRock’s Bitcoin ETF was the 31st-largest ETF globally as of Jan 31 last year, which was worth more than $55.5 billion and has 48.7% of the cumulative holdings of all U.S. spot Bitcoin ETFs.