BlackRock purchased $1 billion worth of Bitcoin last week and an additional $300 million on Monday.
The asset management company is also investing in MicroStrategy to strengthen its connection to the BTC market.
BlackRock's Bitcoin Strategy
According to data from Arkham Intelligence, BlackRock purchased $1 billion worth of Bitcoin last week. The current total holding is 399,525 BTC, a significant amount, but still less than the 667,526 BTC held by Binance. According to Arkham's data, BlackRock has been steadily purchasing 600 BTC per day.
Read more: Who Will Own the Most Bitcoin by 2024?
BlackRock has accelerated its Bitcoin purchases in October. Initially, it purchased $680 million worth of assets over two days, and then shifted to a steady acquisition plan. BlackRock's Bitcoin ETF, IBIT, led the ETF inflows in October. CEO Larry Fink has endorsed Bitcoin as an independent asset class.
BlackRock's large-scale purchase pattern shows no signs of slowing down. According to data from LookOnChain, on Monday, BlackRock invested another $300 million and acquired 4,369 coins. This accounted for the majority of the Bitcoin purchased by all ETF issuers on October 28.
However, BlackRock is diversifying its Bitcoin-centric investment strategy. Last week, it expanded its stake in MicroStrategy to 5.2%. MicroStrategy is not an ETF issuer, but a major corporate investor in Bitcoin.
"MicroStrategy's 2x T-Rex ETF is essentially a 4x Bitcoin ETF. The 30-day volatility is 168%, while IBIT's is 41%. They can't launch a 4x Bitcoin ETF, but by doubling down on MicroStrategy, they've created the ultimate speculative trading tool," said Bloomberg ETF analyst Eric Balchunas in a tweet.
BlackRock's investment in MicroStrategy has lower volatility than ETFs directly linked to the value of Bitcoin. However, Balchunas' direct comparison of MicroStrategy's volatility and returns to BlackRock's IBIT is an important one. Bitcoin's recent strength has pushed MicroStrategy's stock to a 24-year high due to BlackRock's involvement.
Read more: What is a Bitcoin ETF?
In conclusion, BlackRock is demonstrating a deep affection for sustained Bitcoin investment. The company is purchasing massive amounts of assets over an extended period. It is also making significant investments in Bitcoin-related assets like MicroStrategy. With this trend, BlackRock is emerging as one of the largest Bitcoin holders.
