BlackRock’s Bitcoin exchange-traded fund (ETF) has surpassed MicroStrategy’s cryptocurrency holdings, according to data from BitMEX Research. As of March 8, BlackRock’s IBIT holds 197,943 Bitcoin, valued at over $13.5 billion. This comes after the Securities and Exchange Commission approved nine new funds on January 10. Excluding Grayscale’s GBTC, the newly launched Bitcoin ETFs collectively hold assets worth $28 billion, with institutional demand driving the cryptocurrency’s upward trajectory. On March 8, Bitcoin crossed the $70,000 threshold for the first time.
Reports on X (formerly Twitter) suggest that over-the-counter (OTC) trading platforms are facing a shortage of Bitcoin and are resorting 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 amassed a portfolio of 193,000 BTC as part of its corporate treasury strategy. The company employs a leveraged operating strategy, utilizing debt to finance operations and investments. MicroStrategy is further strengthening its Bitcoin strategy through a planned debt offering that aims to raise over $600 million. This move is intended to enhance its Bitcoin reserves.
MicroStrategy’s Bitcoin-centric approach has led to its stock (MSTR) being dubbed a “leveraged Bitcoin ETF.” The strategy has proven successful thus far, with MSTR surging by 642% in the last 12 months, significantly outperforming Bitcoin’s 244% gains during the same period.
MicroStrategy’s CEO, Michael Saylor, has expressed no intention of selling the company’s Bitcoin reserves. In fact, he stated that he plans to continue buying Bitcoin indefinitely, as he views it as the ultimate exit strategy. Saylor believes that Bitcoin is technically superior to gold, the S&P 500, and real estate, despite the significantly larger market capitalizations of these asset classes.
In summary, BlackRock’s Bitcoin ETF has surpassed MicroStrategy’s cryptocurrency holdings, and the newly launched Bitcoin ETFs collectively hold assets worth $28 billion. MicroStrategy continues to strengthen its Bitcoin strategy, and its CEO has no plans to sell the company’s Bitcoin reserves.