TLDR
- BlackRock has bought more shares of Strategy (formerly MicroStrategy). They went from owning 4.09% to 5% with their purchase of 1.78 million shares in Q4 2024.
- The investment giant now holds 11.26 million shares, worth $3.67 billion at current prices.
- This increased stake coincides with Strategy’s ongoing commitment to Bitcoin, as the company holds over 471,107 Bitcoin (around $46 billion in value).
A lot of people missed this one. It was an easy piece to overlook. And if it weren’t for official SEC filings, even more people wouldn’t have noticed. But when Blackrock, the largest asset manager in the world, drops this kind of scratch on a single stock with no intention of throwing its weight around and influencing the company, we notice. Here are our two pennies.
What Did BlackRock Do?
The asset manager deepened its ties to Strategy by acquiring 1.78 million more shares as of December 31, 2024. The data comes straight from a filing with the U.S. Securities and Exchange Commission (SEC).
BlackRock’s updated stake means it now owns 5% of Strategy’s shares — a notable benchmark that required it to file this public disclosure.
But here’s the kicker: BlackRock didn’t buy these shares to exert control or make big decisions at Strategy. That’s why they filed a Schedule 13G, a form reserved for passive investors not looking to meddle in the company’s management. If they intended to influence the company in any way, they would have filed a 13D.
This is how an asset manager says, “We like it. Keep doing what you’re doing”.
At current prices, this new investment is an extra $584 million bet on Strategy. If you thought “crypto and traditional finance don’t get along,” well, here’s a prime counterexample.
Why Focus on Strategy?
Name change aside, the company makes headlines because of its massive Bitcoin holdings. Strategy is the largest corporate holder of Bitcoin, with a whopping 471,107 BTC secured under its belt. At current rates, that’s $46 billion worth of digital gold.
When BlackRock invests in Strategy, it’s also doubling down on the company’s crypto-forward approach — essentially increasing its exposure to the digital asset without purchasing it outright. While Strategy isn’t a crypto company itself, its balance sheet is practically a shrine to Bitcoin.
Why the Move Matters
Here’s why this move was big enough to make waves in the crypto world—and why you, as a crypto newcomer, should care.
1. Biggest Player in Traditional Finance Goes Bigger on Crypto
BlackRock manages $10 trillion in assets. Increasing their stake in a Bitcoin-focused company like Strategy suggests a deepening of their interest in the crypto space.
These guys don’t make decisions lightly or on a whim. It’s a move that reflects growing trust in Bitcoin as a long-term store of value.
2. Institutional Investors = Market Confidence
Institutions pouring billions into Bitcoin-related ventures signals confidence in the crypto market’s future. BlackRock’s passive purchase indicates they’re bullish on Bitcoin’s long-term role in global finance, even if short-term volatility is tougher.
For beginners, this means added legitimacy to crypto’s place in the broader financial system.
3. What Happens to Strategy is Linked to Bitcoin
Since Strategy holds so much Bitcoin, the company’s fate — and its stock price — closely mirrors Bitcoin’s performance. If Bitcoin rises, Strategy’s value tends to rise, too, creating an indirect way to invest in crypto without actually buying Bitcoin (though it’s not quite the same).
BlackRock’s new stake indicates that they believe this Bitcoin dynamic holds long-term value, even against the backdrop of volatility and losses like Strategy’s $670.8 million loss in Q4 2024.
Before Making Any Large Moves…
If BlackRock’s move has piqued your curiosity, here are a few things to consider as a beginner in crypto investing:
- Understand the Relationship Between Stocks and Bitcoin: While buying Strategy stock gives indirect exposure to Bitcoin, it’s not the same as owning Bitcoin directly. Learn about the differences in risks and rewards.
- Research Institutional Crypto Moves: When a major firm like BlackRock moves into crypto-adjacent companies, it can impact market sentiment. Staying aware of these trends helps new investors make informed decisions about timing and value.
- Take It Slow: Crypto’s volatility is unmatched. If you’re thinking of jumping into Bitcoin because BlackRock’s confidence inspires you — start small, learn as you go, and don’t rush into large investments.
BlackRock’s investment in Strategy is a strong signal that even the most traditional names in finance are seeing value in Bitcoin’s long-term potential.
For beginners, this news is less about jumping in immediately and more about understanding the growing connection between traditional finance and the crypto world. The lines will only get blurrier as digital assets claim more legitimacy.
Stick to foundational research, follow reliable crypto news sources, and keep an eye on moves from industry titans like BlackRock. The more informed you are, the better your chances to invest wisely.
