Key Takeaways:
- BlackRock’s IBIT ETF now holds more Bitcoin than MicroStrategy, with 197,943 BTC valued at over $13.5 billion.
- The growth in BlackRock’s Bitcoin holdings follows the SEC’s approval of nine new funds, signaling strong institutional interest in cryptocurrency.
- Bitcoin’s value surged past $70,000 for the first time on March 8, amidst growing demand and limited supply scenarios highlighted by over-the-counter trading platforms.
- MicroStrategy, employing a leveraged strategy to amplify its Bitcoin reserves, plans to raise over $600 million through a debt offering to further invest in Bitcoin.
- MicroStrategy’s CEO, Michael Saylor, remains committed to Bitcoin, considering it superior to traditional assets like gold, the S&P 500, and real estate, with no plans to divest from the cryptocurrency.
BlackRock’s IBIT, a spot Bitcoin exchange-traded fund (ETF), has now surpassed MicroStrategy in Bitcoin holdings, boasting a massive 197,943 BTC, valued at over $13.5 billion as of March 8. This leap comes nearly 40 trading sessions following the Securities and Exchange Commission’s approval of nine new funds on January 10.
[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
Notably, excluding Grayscale’s GBTC, these newly launched Bitcoin ETFs collectively command assets worth $28 billion, highlighting the burgeoning institutional interest pushing the cryptocurrency’s value upward.
On March 8, Bitcoin’s price breached the $70,000 threshold for the first time.
The buzz around Bitcoin’s limited availability is palpable on social platforms like X (formerly Twitter), with reports suggesting that over-the-counter (OTC) trading platforms are scrambling for Bitcoin, increasingly relying on public exchanges to meet orders.
OTC desks, catering primarily to large-volume traders like institutional investors, are feeling the pinch as demand surges.
OTC desks are running out of Bitcoin.
— Lark Davis (@TheCryptoLark) March 4, 2024
Suppliers must return to public exchanges to source new Bitcoin when demand is overwhelming.
The supply & demand pressure is building. pic.twitter.com/qoAiX8WW0A
MicroStrategy, though not an ETF issuer, has amassed a significant Bitcoin portfolio of 193,000 BTC, integrating it into its corporate treasury strategy. The technology firm adopts a leveraged operational approach, utilizing debt for financing its operations and investments.
In a bold move to bolster its Bitcoin reserves, MicroStrategy announced a plan to initiate a debt offering aiming to raise over $600 million.
This Bitcoin-centric approach has led to MicroStrategy’s stock (MSTR) being dubbed as a “leveraged Bitcoin ETF,” which has significantly benefited the company.
Over the last 12 months, MSTR stock has skyrocketed by 642%, notably outperforming Bitcoin’s 244% gains during the same timeframe.
Michael Saylor, CEO of MicroStrategy, remains unwavering in his commitment to Bitcoin, declaring to Bloomberg on February 20, “I’m going to be buying the top forever. Bitcoin is the exit strategy.”
Saylor champions Bitcoin over traditional assets like gold, the S&P 500, and real estate, arguing for its technical superiority despite these assets having substantially higher market capitalizations.
“Bitcoin is technically superior to those asset classes. And that being the case, there’s just no reason to sell the winner to buy the losers,” Saylor asserts.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
With a knack for engaging storytelling and strategic content creation, Fleming is dedicated to educating and inspiring his audience with insightful analysis on cryptocurrencies, NFTs, and the future of digital finance.
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