Two of the largest institutional players in the crypto space have made major moves this week, underscoring unwavering conviction in Bitcoin despite recent market turbulence. BlackRock, the world’s largest asset manager, deepened its indirect BTC exposure with a $535.6 million purchase of MicroStrategy shares, while the software-turned-bitcoin-treasury company itself—now rebranded as Strategy—acquired an additional $2.01 billion worth of Bitcoin using fresh equity proceeds.
BlackRock’s Indirect Bet
According to a May 18 filing, BlackRock bought 3.14 million shares of MicroStrategy (MSTR) for approximately $535.6 million at an average price of $170.50 per share. The transaction pushed BlackRock’s total holdings to 17.75 million shares, worth about $3.02 billion and representing roughly 10% of the company’s outstanding equity. The move reflects a growing institutional appetite to gain Bitcoin-linked returns through regulated, liquid equity instruments without the custody and compliance hurdles of direct crypto holdings.
Strategy’s Bitcoin Buying Machine
Separately, Strategy disclosed an 8-K filing with the SEC that it had purchased 24,869 BTC between May 11 and May 17 for roughly $2.01 billion at an average price of $80,985 per bitcoin. This lifts its total holdings to 843,738 BTC—acquired at an aggregate average of $75,700 per coin—worth about $65.3 billion and equivalent to over 4% of Bitcoin’s 21 million supply cap. The purchase ranks as Strategy’s sixth-largest weekly BTC acquisition ever and its second-largest this year.
Funding Shifts to Preferred Stock
The latest accumulation was fueled largely by sales of Strategy’s STRC perpetual preferred shares. The company sold 19.5 million STRC shares for about $1.95 billion, leaving $17.51 billion remaining under that program. It also sold $83.7 million worth of common stock (MSTR). This reliance on preferred equity—which pays an adjustable monthly dividend currently yielding 11.5%—highlights how Strategy’s buying power now depends not just on Bitcoin sentiment but on sustained investor demand for its capital instruments. Analysts at K33 noted that the dividend schedule may be creating recurring mid-month buying pressure, amplifying Strategy’s market impact.
Broader Market Context
The simultaneous bets come as Bitcoin trades under pressure, dipping below $77,000 amid macro concerns. Many corporate bitcoin treasury stocks have pulled back sharply from 2025 highs, and Strategy’s own share price fell 5.1% last week. Yet the buying signals a structural shift: top-tier asset managers like BlackRock and dedicated treasury pioneers like Strategy are treating Bitcoin as a long-term allocation, not a short-term trade. Risk factors remain—volatility, dilution, and the fragility of investor appetite for preferred share issuance—but for now, institutional conviction appears as strong as ever.
