BlackRock’s IBIT and MicroStrategy are both accumulating massive amounts of Bitcoin, but their mechanisms differ fundamentally. IBIT buys Bitcoin passively through ETF investor demand, while MicroStrategy actively raises capital through equity issuance, convertible debt, and preferred stock to fund its Bitcoin purchases for its corporate treasury. IBIT offers institutional access through a regulated product, whereas MicroStrategy provides leveraged exposure tied to management’s Bitcoin strategy. These two models, though not directly comparable, illustrate Bitcoin’s transformation as it is being absorbed by traditional financial structures, each with its own advantages and risks.
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