Bitcoin continues to draw attention from some of the biggest names in the fintech industry despite the current turbulent times. One such notable mention is BlackRock, one of the largest asset management companies in the world with over $8 trillion in assets.
Last year, they made significant investments in cryptocurrencies, but once the SEC targeted some crypto businesses, they scaled back somewhat. They are now heavily investing in Bitcoin. What do they know that we don’t?
According to one source, BlackRock, Bank Of America [BOA], and Fidelity quietly bought record quantities of bitcoin in Q1 2023, while the SEC is pursuing legal action against Binance and Coinbase.
These industry biggies have been steadily purchasing huge amounts of MicroStrategy [MSTR] stocks, the largest institutional holder of Bitcoin, which owns 140K BTC, worth over an astounding $3 billion.
This begs the issue of why, in light of the most recent SEC litigation and Operation Chokepoint 2.0, these institutions are purchasing equities that are tied to the price of Bitcoin.
The answer is simple, buying MSTR is the easiest way for some US investors to have exposure to the price of BTC because there isn’t an ETF in the nation yet.
From the above chart, BOA, the second largest US bank, has curiously increased its exposure to MSTR by a staggering 47,800% in the first quarter of 2023.
While BOA may own 2.37% of MSTR, BlackRock has a stake that is three times bigger! It’s noteworthy to see that BlackRock has a 6% ownership in MSTR, which is worth approximately $156 million.
However, they’re not the only billion-dollar bank covertly acquiring MSTR.
6th Largest Canadian Bank Invests In Bitcoin
Another leading firm Fidelity with over $4.5 Trillion in AUM, has also increased its exposure to MicroStrategy by 28,000%.
Global demand for Bitcoin exposure exists and is not just restricted to the US. In April 2023, the sixth-largest bank in Canada bought MicroStrategy stock for more than $500,000, according to a recent story.
One wonders why are all these banks doing this in early 2023, when the price of Bitcoin is down 60%. Are they following the lead of the $700B bank that recently predicted BTC to hit $100K in 2024? Only time will tell.