BlackRock Now Holds More Bitcoin Than MicroStrategy
Data projections from BitMEX have revealed that BlackRock’s Bitcoin iShares Trust has surpassed MicroStrategy in terms of total Bitcoin reserves. The report revealed that IBIT now contains around 198K Bitcoins. Data projections issued by BitMEX analytics indicate that BlackRock’s IBIT now possesses around 197,943 Bitcoins that are valued at around $13.5 billion as of 8th March.
This AUM is reported after 40 trading sessions since the approval and listing of IBIT on 11th January. All the Bitcoin spot ETF providers now hold around $28 billion in Bitcoin with the exception of Grayscale’s GBTC. The institutional trading interest has continued to drive the price of Bitcoin upwards. As of 8th March, Bitcoin prices crossed $70,000 for the first time in history.
On this account, BitMEX Research has reported a positive net inflow of $223 million within the last 24 hours. On this account, the assets of ETFs excluding GBTC are now standing at $28 billion making it bigger in comparison to total holdings of GBTC for the first time.
The firm posted updates on social media platform containing statistics about over-the-counter (OTC) trading platforms. The report noted that OTCs are running out of Bitcoin reserves and looking at public exchanges to complete orders.
MicroStrategy Continues to Increase Bitcoin Holdings
Another part of BitMEX Research has indicated that institutional investors usually trade on OTC platforms however it seems that there is a supply crunch there. Meanwhile, MicroStrategy a business intelligence and software solution provider has continued its plan to add more Bitcoins to its balance sheet. The firm has refrained from issuing a Bitcoin ETF but it has generated a portfolio of 193K Bitcoins as part of its corporate treasury.
The firm also makes use of leverage operating whereby debt is used to fund operations and investments. The firm is doubling down on Bitcoin strategy. On this account, the firm has announced the plans for debt offering that will raise $600 million to fund new Bitcoin purchases. MicroStrategy can go so far as defining its stock offering MSTR as a leveraged Bitcoin ETF.
MSTR Price Appreciation
Based on the historical MSTR price appreciation, it seems that the Bitcoin-based strategy of the firm has paid off well. During 2023, MSTR printed a 642% increment. This increment is a leg ahead of Bitcoin’s total price appreciation for the same duration sitting at 244%.
Michael Saylor, the executive chairperson of MicroStrategy has noted that he does not have plans to sell Bitcoin reserves and defined Bitcoin as an exit strategy while speaking to Bloomberg on 20th February.
Bitcoin Investment Strategy and Future Projections
Commenting on the matter, Saylor noted that cryptocurrencies technically have an advantage over gold, S&P 500, and real estate. He considered the fact that these markets have a bigger market cap in comparison to Bitcoin. He further stated that there are no reasons to sell the gainer and purchase the other investment options.
Data projections from JMP securities have indicated that spot Bitcoin ETFs can record a net inflow of $220 billion in the upcoming years. The research report has projected that these inflows postulate that Bitcoin prices can quadruple to reach $280K in the next 3 years.
The price projection applies the multiplier effect on the new inflows. JMP researchers also noted Bitcoin spot ETFs subverted expectations by reaching $10 billion within 2 months.
At the same time, the analyst has retained that the total activity is likely just the start. Devin Ryan, the lead analyst of JMP, notes that the capital multiplier of 25X is enough to drive Bitcoin to $5.5 trillion market cap or $280k per unit.
Last week, Bitcoin ETF net inflows crossed a new record of 14,706 Bitcoins valued at $1 billion as per BitMEX projections. Another JPMorgan research projects Bitcoin spot ETF market to balloon to $62 billion in the next 2-3 years.
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