BlackRock vs. MicroStrategy: Who Will Win the $14 Billion Bitcoin Battle?
Mar. 15, 2024 07:14 AMKey Points
- 1. BlackRock and MicroStrategy are engaged in a battle for the title of the largest Bitcoin holder, with $14 billion at stake.
- 2. BlackRock's iShares Bitcoin Trust ETF currently holds 203,754 BTC, while MicroStrategy has 205,000 BTC.
- 3. The competition highlights the growing importance of digital assets for major companies.
- 4. MicroStrategy's CEO, Michael Saylor, has been a vocal supporter of Bitcoin's resilience and security.
- 5. The launch of BlackRock's ETF has benefited MicroStrategy, with its stock surging by 642% in the past year.
In a colossal showdown for the title of the largest Bitcoin holder, corporate giants BlackRock and MicroStrategy are locked in a fierce battle, with a whopping $14 billion at stake.
BlackRock's newly-launched iShares Bitcoin Trust ETF is currently holding 203,754 BTC, valued at around $14.59 billion at the prevailing price of $71,650 per Bitcoin. This ETF briefly overtook MicroStrategy's Bitcoin treasury holdings, a software intelligence firm worth $25 billion, which has been accumulating Bitcoin since 2020.
However, MicroStrategy swiftly responded by acquiring an additional 12,000 BTC, bringing its total holdings to 205,000 BTC, with an estimated value of $14.68 billion at the current price.
This high-stakes duel reflects the growing significance of digital assets in the eyes of some of the world's largest companies, as the price of Bitcoin continues to soar to unprecedented heights, breaching $72,800 recently.
[1/4] Bitcoin ETF Flow - 08 March 2024
— BitMEX Research (@BitMEXResearch) March 9, 2024
All data in. $223m positive net flow for thew day
The assets of the ETFs excluding GBTC are now over $28 billion, this is now larger than GBTC's assets for the first time pic.twitter.com/5BlBTu4WLn
BlackRock's aggressive move to outpace MicroStrategy's Bitcoin accumulation is noteworthy, considering MicroStrategy's CEO Michael Saylor's vocal support for Bitcoin. Saylor has consistently emphasized the resilience and security of Bitcoin, declaring it the "most secure financial asset in the world" due to its thermodynamic soundness.
The launch of BlackRock's iShares Bitcoin ETF has significantly benefited MicroStrategy, with its stock surging by an impressive 642% in the past year. This growth rate surpasses even that of Bitcoin itself, which experienced a 244% surge in the last 12 months, fueled by the introduction of ETFs by industry giants like BlackRock and Fidelity.
Despite other asset classes such as gold, real estate, and the S&P 500 boasting higher market capitalizations than Bitcoin, Saylor remains unwavering in his optimism towards the digital asset. He believes that Bitcoin's technical superiority over traditional assets makes it the ultimate investment, stating, "There's just no reason to sell the winner to buy the losers."
Saylor's steadfast commitment to Bitcoin is reflected in his investment strategy, as he asserts, "I'm going to be buying the top forever. Bitcoin is the exit strategy." This fierce competition between BlackRock and MicroStrategy underscores the growing importance of Bitcoin in the corporate world, signaling a new era of digital asset adoption among major institutions.
