BlackRock Bitcoin ETF Overtakes MicroStrategy Holdings

Liputan6.com, Jakarta BlackRock's Spot Bitcoin ETF has managed to surpass MicroStrategy's total Bitcoin holdings. According to data collected by BitMEX Research, BlackRock's IBIT held 197,943 Bitcoins worth more than USD 13.5 billion as of March 8, 2024.

Excluding Grayscale's GBTC, newly launched Bitcoin ETF funds, along with institutional demand, continue to increase the value of the cryptocurrency, collectively holding USD 28 billion in assets. On March 8, Bitcoin price surpassed the USD 70,000 mark for the first time.

Reports published via X indicate that the supply of Bitcoin circulating on over-the-counter (OTC) trading platforms is running low. This leads to a reliance on public exchanges to fulfill orders. OTC platforms usually serve large volume investors such as institutional investors.

Although not an ETF issuer, technology company MicroStrategy holds a portfolio of 193,000 Bitcoins as part of its corporate treasury strategy.

The software company implemented a leveraged business strategy using hedging to finance operations and investments. MicroStrategy is doubling down on its Bitcoin strategy, recently announcing plans for a debt offering of more than USD 600 million to increase its Bitcoin reserves.

Launching Cointurk, Monday (11/3/2024), MicroStrategy's Bitcoin-centric strategy has caused its shares to be labeled as a leveraged Bitcoin ETF fund. This strategy has proven effective so far, with MSTR showing an increase of 642% over the past 12 months, significantly outpacing the crypto Bitcoin's gain of 244% over the same period.