black rockThe world’s largest asset manager has revealed that it owns 12,224 bitcoins worth about $570 million at current prices. This represents 8.1% of the total Bitcoin holdings of business intelligence firm MicroStrategy, which has become one of the largest corporate investors in the cryptocurrency.
The disclosure was made in a filing with the U.S. Securities and Exchange Commission (SEC) on August 25, 2023. BlackRock reportedly owned 6.71 million MicroStrategy shares as of June 30, 2023, and held a 15.2% stake in the company. According to MicroStrategy’s latest quarterly report, the company holds 151,079 bitcoins as of June 30, 2023, worth his $7.1 billion.
BlackRock is not the only institutional investor with exposure to Bitcoin through MicroStrategy. Other major shareholders include Vanguard, Morgan Stanley and ARK Invest. These companies have indirectly benefited from MicroStrategy’s aggressive bitcoin accumulation strategy, with the company purchasing over 100,000 bitcoins since August 2020.
Tekedia Mini MBA (September 11th to December 2nd, 2023) Registration for the new edition will open. If you register by August 29, 2023, the cost is NGN 90,000 or $170. here
Tekedia AI in Business Masterclass start registration here.
Join Tekedia Capital Syndicate and Koh YiInvest in Africa’s best start-ups here. The next cycle will start in September or October 2023.
BlackRock’s bitcoin holdings are important for several reasons. First, it shows asset managers are bullish on both MicroStrategy and Bitcoin despite the volatility and regulatory uncertainty surrounding the cryptocurrency market. Second, it shows BlackRock diversifying its portfolio with alternative assets with high growth potential and low correlation to traditional markets. Third, BlackRock has also launched multiple exchange-traded funds (ETFs) that track companies involved in blockchain and cryptocurrencies, suggesting it has established itself as a leader in the digital asset space. there is
BlackRock CEO Larry Fink has expressed optimism several times about the future of digital assets. In July 2023, he said he was “fascinated” by Bitcoin and believed it could become a “great asset class.” He also said that BlackRock has seen increasing demand for cryptocurrency-related products and is looking at how it can offer them to its customers.
BlackRock’s involvement in Bitcoin could have a positive impact on the adoption and acceptance of cryptocurrencies by other institutional investors and regulators. As the world’s largest asset manager with more than $9 trillion under management, BlackRock has significant influence and credibility in the financial industry. The company’s endorsement of Bitcoin could encourage more investors to allocate part of their portfolios to digital assets and pave the way for regulatory clarity and innovation in the crypto space. .
One of the main reasons BlackRock is bullish on Bitcoin is its potential to act as a store of value and a hedge against inflation. As the global economy recovers from the pandemic, many central banks are adopting expansionary monetary policies to stimulate growth and support recovery. However, this also increases the risk of inflation and currency devaluation, undermining the purchasing power of fiat currencies.
Bitcoin, on the other hand, has a limited supply of 21 million coins, with a predictable issuance schedule governed by a decentralized network of nodes. This makes it immune to inflation and manipulation by central authorities. Bitcoin also possesses a high degree of scarcity and durability, properties that are essential for a store of value.
Another reason BlackRock is bullish on Bitcoin is the increasing adoption and acceptance of Bitcoin by institutional investors, businesses and regulators. Over the past year, we have witnessed a surge in interest and demand for Bitcoin from a variety of companies looking to diversify their portfolios, increase revenue, and gain exposure to the emerging digital economy.
For example, MicroStrategy, Square, Tesla, and PayPal are some of the notable companies that have invested in Bitcoin or have incorporated Bitcoin into their business. Additionally, several regulators around the world have taken steps to clarify and provide guidance on the legal status and treatment of Bitcoin and other cryptocurrencies. For example, the U.S. Office of the Comptroller of the Currency (OCC) has allowed banks to store crypto assets and facilitate payments, while the Securities and Exchange Commission (SEC) has approved several Bitcoin Exchange Traded Funds (ETFs) in the United States. ) has been approved. Canada and Brazil.
The third reason BlackRock is bullish on Bitcoin is its innovation and resilience as a technology and network. Bitcoin is not only a digital currency, but also a protocol that allows peer-to-peer transactions without intermediaries or censorship. Bitcoin relies on cryptography, consensus mechanisms and distributed ledger technology to ensure security, integrity and transparency. Bitcoin also has a vibrant and diverse community of developers, users, miners and enthusiasts who contribute to its improvement and evolution. Despite facing numerous challenges and threats over its 12-year history, including hacking attacks, regulatory uncertainty, scalability issues, and forks, Bitcoin has demonstrated its ability to adapt and overcome them. I have proved.
BlackRock is bullish on Bitcoin because it believes it has a unique value proposition as a store of value, a hedge against inflation, an alternative asset class and a revolutionary technology. BlackRock’s bullish stance on Bitcoin reflects its recognition of the potential and importance of this emerging phenomenon in reshaping the future of finance and society.
