BlackRock offers safer Bitcoin exposure through its regulated ETFs with strong institutional backing.
Strategy Inc. provides high-risk, high-reward exposure by holding massive amounts of Bitcoin on its balance sheet.
Investor choice depends on risk tolerance: diversification with BlackRock or aggressive Bitcoin leverage with Strategy.
The competition between BlackRock and Strategy Inc. (formerly known as MicroStrategy) to become the leading Bitcoin proxy stock has grown intense in 2025. Both companies provide ways for investors to get exposure to Bitcoin without directly owning cryptocurrency. However, their methods, risk levels, and business structures are very different. Understanding these differences is crucial to knowing which one might be stronger as a Bitcoin proxy.
BlackRock is the world’s largest asset management company. It manages about $11.5 trillion in assets for investors around the world. The company is best known for its investment platform called Aladdin and its popular ETFs (Exchange-Traded Funds) under the iShares brand.
In January 2024, BlackRock made its big move into Bitcoin when it launched the iShares Bitcoin Trust (IBIT) after getting approval from U.S. regulators. Since then, the fund has become one of the fastest-growing Bitcoin ETFs, pulling in about $70 billion in assets in a very short time. This massive success shows the strong demand from institutions that want regulated access to Bitcoin.
BlackRock’s investment experts recommend that investors keep only a small portion (about 1% to 2%) of their portfolios in Bitcoin. They view Bitcoin as a way to diversify portfolios because it tends to move differently from other major asset classes.
BlackRock is also expanding globally. In March 2025, it launched a European version of its Bitcoin ETF, making it available to investors in Switzerland, Paris, Amsterdam, and Frankfurt.
Strategy Inc. has taken a very different approach. Originally, it was a business software company. But in recent years, it has transformed into what many call a "Bitcoin treasury company." Its main business strategy now is to buy and hold as much Bitcoin as possible.
By May 2025, Strategy Inc. owned about 582,000 Bitcoins, which is around 3% of the total Bitcoin supply in the world. This massive holding makes Strategy one of the largest private holders of Bitcoin globally.
Strategy’s stock has performed extremely well because of its aggressive Bitcoin buying. Over the past five years, the stock price has increased by about 2,900%. In the last year alone, its stock gained even more than Bitcoin itself, as well as major tech stocks like Nvidia.
To fund its continued Bitcoin purchases, Strategy has been issuing new stock and preferred shares. In May 2025, it raised nearly $1 billion by selling a new class of preferred shares offering an 11.75% yield. The money was used to buy more Bitcoin.
Bitcoin's price has been climbing again. Recently, Bitcoin was trading around $109,000, very close to its all-time high of about $112,000. As Bitcoin prices rise, both BlackRock and Strategy Inc. benefit, though in different ways.
Strategy Inc.'s aggressive Bitcoin strategy has also inspired a new trend where some companies adopt Bitcoin as part of their treasury. However, no other company has matched Strategy’s level of commitment to buying Bitcoin.
Meanwhile, BlackRock’s Bitcoin ETF (IBIT) keeps attracting massive inflows from institutional investors. In just one recent week, it attracted almost a billion dollars in new investments. This shows that many large investors feel more comfortable investing in Bitcoin through a regulated ETF rather than holding the cryptocurrency directly.
Regulators and policymakers are also becoming more open to institutional Bitcoin investments. U.S. senators and financial regulators have made public statements showing support for Bitcoin products like ETFs, which further boosts investor confidence in BlackRock's approach.
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Strategy Inc. is highly dependent on the price of Bitcoin. If Bitcoin prices rise, the company’s stock can skyrocket. However, if Bitcoin prices fall sharply, the company’s stock can also drop heavily. Because of its high leverage and concentrated holdings, Strategy’s stock is much more volatile than BlackRock’s ETF.
The preferred shares that Strategy issues offer high yields (some as high as 11.75%), but they carry higher risk because they are junior in the company’s capital structure. If Bitcoin crashes, Strategy’s ability to make payments on these preferred shares could be at risk.
BlackRock offers a much more balanced and safer way to gain exposure to Bitcoin. Since the iShares Bitcoin Trust is a regulated ETF, it comes with a lower risk of company-specific issues like debt or poor management decisions. However, like any Bitcoin investment, it is still exposed to the cryptocurrency’s natural price swings and regulatory developments.
Because of its scale and diversified business, BlackRock is more stable. Even if Bitcoin prices drop, BlackRock’s main business remains strong because it manages trillions of dollars in other assets.
Strategy’s balance sheet is heavily tied to Bitcoin. As of late 2024, about 92% of the company’s total assets were Bitcoin holdings, valued at around $23.9 billion at that time. The company also carries significant debt and has continued to issue both common and preferred stock to fund its Bitcoin purchases.
Strategy still operates at a financial loss from its original software business. Its reported net loss for 2024 was over $1.1 billion.
In contrast, BlackRock remains highly profitable. Its adjusted earnings for 2024 were $43.61 per share. The company generates consistent revenue from managing investment funds, advisory fees, and technology services, making it financially stronger and more diversified than Strategy Inc.
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For those who want maximum exposure to Bitcoin and can handle extreme ups and downs, Strategy Inc. may offer higher potential rewards. Its stock can rise much faster than Bitcoin itself during bull markets because of the way the company uses debt and stock sales to increase its Bitcoin holdings.
For more cautious investors who still want Bitcoin exposure but with lower risk, BlackRock’s iShares Bitcoin Trust is likely the better option. The ETF gives investors direct exposure to Bitcoin prices while avoiding company-specific risks like heavy borrowing or management decisions.
For investors who want to earn high yields, Strategy’s preferred shares provide attractive income opportunities. However, these come with the risk that the company may struggle to make payments if Bitcoin prices fall sharply.
| Feature | BlackRock | Strategy Inc. | |
|---|---|---|---|
| Bitcoin Exposure | Direct spot Bitcoin via ETF | Massive Bitcoin treasury holdings | |
| Volatility | Lower due to ETF structure | High due to leverage and concentrated holdings | |
| Business Stability | Highly diversified | Focused almost entirely on Bitcoin | |
| Financial Health | Strong and profitable | Operating losses and high debt | |
| Yield Options | None | High-yield preferred shares | |
| Regulation | Heavily regulated ETF | Exposed to company-specific risks | |
| Recent Performance | Closely tracks Bitcoin | Has outperformed Bitcoin significantly |
Both BlackRock and Strategy Inc. offer investors ways to participate in Bitcoin’s rise, but they serve different types of investors.
BlackRock provides a safer, regulated, and more balanced approach through its iShares Bitcoin Trust. Its massive scale, regulatory support, and consistent fund inflows make it one of the strongest choices for institutional and retail investors who want Bitcoin exposure without excessive risk.
Strategy Inc., on the other hand, is best suited for aggressive investors who believe strongly in Bitcoin’s future. Its stock has delivered huge returns in recent years, but also carries much higher risk due to its concentrated Bitcoin holdings, borrowing, and frequent capital raises.
Choosing between BlackRock and Strategy Inc. ultimately depends on the investor's goals, risk tolerance, and confidence in Bitcoin's long-term growth.