BlackRock Bitcoin ETF Surpasses MicroStrategy in BTC Holdings

BlackRock’s Bitcoin exchange-traded fund (ETF) has surpassed MicroStrategy’s holdings of the cryptocurrency. BlackRock’s IBIT currently holds 197,943 BTC, worth over $13.5 billion as of March 8. This comes nearly 40 trading sessions after the United States Securities and Exchange Commission (SEC) approved nine new funds on January 10. The newly launched Bitcoin ETFs, excluding Grayscale’s GBTC, collectively hold assets valued at $28 billion. Institutional demand continues to drive the cryptocurrency market higher.

On March 8, Bitcoin’s price reached a milestone by crossing the $70,000 mark for the first time. Reports indicate that over-the-counter (OTC) trading platforms are struggling to meet the demand for Bitcoin and are turning to public exchanges to fulfill orders. OTC desks typically serve large-volume traders like institutional investors.

While not an ETF issuer, technology firm MicroStrategy has been accumulating Bitcoin as part of its corporate treasury strategy. MicroStrategy currently holds 193,000 BTC. The software company employs a leveraged operating strategy, using debt to finance operations and investments. In line with its Bitcoin-focused approach, MicroStrategy recently announced plans for a debt offering of over $600 million to further strengthen its Bitcoin reserves.

MicroStrategy’s Bitcoin strategy has proven successful so far. Its stock, MSTR, has surged 642% in the last 12 months, significantly outperforming Bitcoin’s 244% gains over the same period. MicroStrategy’s CEO, Michael Saylor, has stated that the company has no plans to sell its Bitcoin reserves. In fact, Saylor has expressed his intention to continue buying Bitcoin, referring to it as the “exit strategy.” He believes that Bitcoin is “technically superior” to other asset classes such as gold, the S&P 500, and real estate, despite their larger market capitalizations.

Saylor’s conviction in Bitcoin’s potential has led MicroStrategy’s stock to be labeled as a “leveraged Bitcoin ETF.” The company’s strategy aligns well with the current market trends and the growing interest in cryptocurrencies among institutional investors. As Bitcoin continues to gain mainstream recognition and acceptance, both BlackRock and MicroStrategy are positioned to benefit from their Bitcoin holdings.