BlackRock Buys $1 Billion in Bitcoin: Here’s What It Means

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

The asset manager has invested in a micro strategy, which indicates a deep relationship with the BTC market.

BlackRock Bitcoin Strategy

BlackRock bought $1 billion worth of Bitcoin last week, according to Arkham Intelligence. Its current total holdings sit at 399,525 BTC, which is a significant amount, but far from Binance's 667,526. According to Arkham's data, BlackRock is continuously buying BTC with daily transactions of around 600 BTC.

Read more: Who will have the most Bitcoins in 2024?

BlackRock went on a Bitcoin buying spree this October, buying $680 million of the asset in two days before switching to a permanent buying plan. Reflecting the success of BlackRock's deep BTC investments, Bitcoin ETF, IBIT, led the October ETF flow. CEO Larry Fink supported Bitcoin as a separate asset class and remains a strong supporter.

This pattern of BlackRock's major acquisitions shows no sign of abating. Loonchain data shows that on Monday, BlackRock acquired 4,369 coins, pumping another $300 million into BTC. This accounts for the majority of Bitcoin shares purchased by all ETF issuers on October 28th.

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

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

BlackRock's MicroStrategy Investment captures less volatility than an ETF linked to the price of Bitcoin. However, it remains a relevant comparison, especially when Balchunas directly compares microstrategy dynamics and returns to BlackRock IBIT. With Bitcoin's recent strong performance, BlackRock's involvement helped push MicroStrategy's stock to a 24-year high.

Read more: What is a Bitcoin ETF?

In conclusion, Blackrock has shown deep affinity for future BTC investment. The firm is buying astronomical amounts of assets on an extended timeline. In addition, it is investing heavily in Bitcoin-adjacent assets such as MicroStrategy. In this direction, BlackRock is growing into the largest Bitcoin holder.