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Record-Breaking Bitcoin Accumulation Amid Market Turmoil

  • BlackRock and Fidelity, two prominent institutions, are displaying aggressive bullishness towards Bitcoin (BTC) despite the current market downturn.
  • These institutions are increasing their exposure to Bitcoin indirectly by purchasing stocks of MicroStrategy (MSTR), the largest corporate holder of Bitcoin.

As market sentiments sour due to mounting fears surrounding regulatory attacks from the U.S. Securities and Exchange Commission (SEC), some prominent institutions appear to be seizing the opportunity to bolster their Bitcoin (BTC) holdings. Let’s delve into their aggressive bullishness in recent months, even among those who do not directly hold Bitcoin (BTC).

Blue-chip banks and corporations have been increasing their exposure to Bitcoin (BTC) by investing in stocks of MicroStrategy (MSTR). According to the Bitcoin Culture newsletter, these institutions have injected a substantial amount of liquidity into MSTR, which serves as the largest corporate holder of Bitcoin (BTC).

The activities of two heavyweight asset management firms, BlackRock and Fidelity, alongside Bank of America, have been closely monitored by the authors of the Bitcoin Culture newsletter. For companies that may be hesitant or restricted from directly purchasing Bitcoin (BTC), investing in MSTR shares provides a reliable proxy investment to gain exposure to Bitcoin’s price performance.

Both BlackRock and Fidelity rank among the top five owners of MSTR stocks. CNN reports that Fidelity has significantly increased its exposure to MSTR by more than sevenfold in recent months. Bank of America, through BofA Securities Inc., has also expanded its stake in MSTR. The size of its holdings has surged by over 47,000%, as revealed by Bitcoin Culture.

Furthermore, MSTR stocks are being aggressively accumulated by leading Canadian banks and investment platforms worldwide. According to data from Bitcoin Treasuries, a reliable tracker of publicly traded companies, governments, and investing conglomerates holding BTC, institutions currently account for a total of 1,652,703 Bitcoins (BTC). This represents approximately 7.87% of the cryptocurrency’s net supply.

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However, it is important to note that most of the largest Bitcoin (BTC) holdings on this list are currently in a loss-making position. Only three out of the top ten corporate holders of Bitcoin—Bitcoin Group SE, Bigg Digital Assets, and Advanced Bitcoin Technologies AG—have managed to profit from their investments in Bitcoin (BTC).

In conclusion, despite the ongoing market turbulence and price declines, institutions like BlackRock and Fidelity remain unwavering in their bullish stance on Bitcoin (BTC). Their strategic increase in exposure to the cryptocurrency through MSTR stocks signals their confidence in the long-term potential of Bitcoin (BTC) as an asset class.

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