Bitcoin News: BlackRock Drastically Increases Bitcoin Exposure Through IBIT ETF Investment

In a significant move that underscores the growing institutional adoption of Bitcoin, BlackRock’s Global Allocation Fund has drastically increased its exposure to the cryptocurrency.

BlackRock’s Global Allocation Fund Drastically Increases Bitcoin Exposure

BlackRock’s Global Allocation Fund has significantly increased its exposure to Bitcoin (BTC) by approximately 1,810% over the past 12 months through its investment in the iShares Bitcoin Trust (IBIT) ETF. As of Jan. 31, the fund held 821,664 shares of IBIT, valued at roughly $47.4 million. This represents a substantial increase from the 43,000 shares held at the end of the first quarter of 2024. The latest disclosure also reflects a broader trend of steady accumulation by the Global Allocation Fund, with the position being worth just over $17 million at the end of the third quarter of 2024.

Manufacturers Are Building ASICs That Look More Like Servers for Bitcoin Mining

Initially, Bitcoin mining was done using CPUs and later GPUs. In 2013, ASICs emerged with a shoebox form factor that became emblematic of the Bitcoin mining industry. However, ASIC manufacturers are increasingly leaning towards a design resembling traditional datacenter servers, specifically a hydro-cooled server rack design, for further efficiency gains. Last September, Bitmain announced its U3S21EXPH model, developed in partnership with Hut 8, adopting this new form factor and direct-to-chip cooling.

GameStop Stock Plunges 25% Intraday After $1.3b Bitcoin Bet

GameStop’s stock experienced a decline of over 25% intraday on Thursday following the announcement of a strategic pivot involving the issuance of $1.3 billion in convertible bonds to finance the acquisition of Bitcoin (BTC). The video game retailer plans to offer these 0% convertible senior notes, maturing in 2030, in a private sale. The proceeds are intended for general corporate purposes, including the purchase of Bitcoin, as part of an updated investment policy approved by the company’s board earlier this week. GameStop shares spiked over 14% in yesterday’s aftermarket hours but opened the day at $25.78 per share and slumped to a low of $21.16 per share on the day. This move aligns GameStop with other corporations like MicroStrategy that have integrated Bitcoin as a treasury reserve.

Bitcoin Remains Severely Undervalued; Halving Cycle Anticipated to Kickstart New Phase

PlanB, the founder of the Bitcoin stock-to-flow model, shared a chart comparing Bitcoin’s market value to traditional assets like Gold. According to the data, Bitcoin appears severely undervalued with a market value of $2 trillion compared to Gold’s $20 trillion. PlanB noted that Bitcoin’s scarcity (S2F-ratio) is 120 versus Gold’s 60, expressing Optimism for a potential surge in market value due to the upcoming halving cycle.

Bitcoin ETF: A Decisive Turning Point With Stabilization of Flows

Bitcoin ETFs have seen a timid recovery of positive flows recently, but CryptoQuant data reveals a mixed picture. Despite a semblance of breath in the market, Bitcoin ETFs are navigating a critical turbulence zone, with a 12% drop from their historic high in early 2025, amounting to nearly $5 billion evaporated. This places BTC in a precarious balance between deceptive stabilization and macroeconomic threats.