BlackRock Boosts Stake in Strategy to 5%, Tops 11 Million Shares
Strategy, formerly known as MicroStrategy, has garnered attention for its consistent Bitcoin acquisitions, attracting institutional investors looking for exposure to the cryptocurrency market.
BlackRock, the renowned asset manager, recently revealed in an SEC filing that it has upped its ownership in Strategy to 5%, representing approximately 11.2 million shares. This move marks a 0.91% increase from its previous 4.09% stake held in September 2024.
When an investor acquires over 5% of a publicly traded company's stock without the intention to influence the company's operations, they are required to file a Schedule 13G. Institutional investors must submit this filing within 45 days after the year-end or within 10 days if their ownership surpasses 10%.
Following BlackRock's increased interest, Strategy's stock on NASDAQ saw a 2% uptick. The surge in trading volumes and share price further reflected the positive market response to BlackRock's latest acquisition, according to TradingView data.
The timing of BlackRock's enlarged stake aligns with Strategy's continuous accumulation of Bitcoin. In its recent financial report, Strategy disclosed record-breaking Bitcoin acquisitions exceeding $20 billion in the fourth quarter of 2024.
Under the leadership of Michael Saylor, Strategy recently rebranded to emphasize its focus on Bitcoin, aiming to capitalize on its holdings and generate substantial gains in 2025.
Despite a brief pause in Bitcoin purchases, Strategy remains committed to its cryptocurrency strategy. However, potential tax implications loom large, with Strategy facing a tax dilemma stemming from unrealized gains on its $47 billion Bitcoin holdings. The company could be subject to the US corporate alternative minimum tax (CAMT) on these gains, potentially impacting its financial outlook.
Amidst uncertainties in the market and evolving regulations, BlackRock's increased investment comes as a promising development for Strategy as it navigates its future Bitcoin investments.