Strategy, previously known as MicroStrategy, rebranded on February 5, 2025, to reflect its focus on Bitcoin. It has been buying Bitcoin since 2020, now holding 478,740 BTC, valued at $46.4 billion as of recent purchases on February 10, 2025.
Despite a $670-million net loss in Q4 2024 as reported on Feb 5, it bought 218,887 BTC, its most aggressive period yet. BlackRock, managing $11.6 trillion, also runs the iShares Bitcoin Trust ETF and increased its Strategy stake, signaling interest in crypto through corporate exposure.
Strategy’s Aggressive Bitcoin Accumulation
Strategy rebranded on February to emphasize its Bitcoin focus. Since 2020, under CEO Michael Saylor, it has amassed 478,740 BTC, valued at $46.4 billion based on a Bitcoin price of $97,567, as per recent data.
Its Q4 2024 earnings, disclosed in public reports, revealed a $670-million net loss. Yet it purchased 218,887 BTC, marking its most aggressive accumulation, according to Strategy’s filings.
Strategy’s $2-billion offering, detailed in a press release on 20th Feb 2025, features senior convertible notes with a 0% coupon, maturing March 1, 2030.
According to the press release, each $1,000 note converts to 2.3072 shares at $433.43 per share, a 35% premium over the current market price of approximately $321, calculated from the premium.
Conversion terms adjust with market conditions, and it targets qualified institutional investors, with an option for an additional $300 million within five business days, as per Strategy’s announcements.
BlackRock’s 5% Strategy Stake: A Vote of Confidence?
BlackRock, managing $11.6 trillion, increased its Strategy stake to 5% on February 7, 2025, per SEC filings. This followed a 2.8% stock surge, tracked on TradingView.
BlackRock’s iShares Bitcoin Trust ETF complements this move, offering direct crypto exposure, while its Strategy stake provides indirect access via corporate holdings. This dual approach, noted in market analyses, suggests strategic diversification.
The market responded positively, with Strategy’s stock rising 2.8% on February 7, 2025, per TradingView data. SaylorTracker reports unrealized gains of over $15 billion, with a 49% return on Bitcoin investments.
Additionally, 12 U.S. states hold $330 million in Strategy stock, indicating institutional interest, as per public reports up to February 20, 2025. California, Florida, Wisconsin, and North Carolina stand out as some of the U.S. states with the largest investments in Strategy stock.
Looming Tax Dilemma
The Coin Republic previously highlighted MicroStrategy’s looming tax challenge tied to its Bitcoin stash. The company’s $47 billion in holdings, including $15 billion in unrealized profits, could trigger a hefty bill under the U.S. corporate alternative minimum tax (CAMT).
New FASB rules this year require firms to report crypto at fair value, boosting MicroStrategy’s retained earnings by up to $12.8 billion and deferred tax liabilities by $4 billion.
This shift ties Bitcoin directly to financial statements, heightening exposure to regulation and market swings. Meanwhile, the IRS plans to monitor crypto trades on exchanges starting in 2025, hinting at tighter oversight.
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