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BlackRock Reveals $4.63B in Q4 2023 Earnings Report, Acquires Global Infrastructure Partners for $12B

Figures reported by BlackRock for Q4 2023 beat the expectations of analysts as the company also purchased Global Infrastructure Partners.

Giant asset manager BlackRock Inc (NYSE: BLK) has announced earnings for Q4 2023, with figures beating Wall Street expectations. According to reports, BlackRock had profit of $0.15, and $9.66 per share for earnings adjusted for restructuring and amortization costs. Also, the total revenue for BlackRock Inc’s Q4 2023 was $4.63 billion, which met expectations on Wall Street. In addition to BlackRock’s figures for Q4 2023, the company also announced the acquisition of private equity firm Global Infrastructure Partners in a $12.5 billion deal.

BlackRock’s Q4 2023 earnings beat expectations, as analysts polled by Zacks Investment Research estimated $8.84 for earnings per share. The company’s assets under management (AUM) crossed $10 trillion in the quarter, higher than the $9.8 trillion Wall Street estimated. In addition, inflows for Q4 2023 alone hit $96 billion. For the entire year, the company reported revenue of $17.86 billion, with profit of $5.5 billion or $36.51 per share.

BlackRock shares rose slightly yesterday to close at $792.61. However, it has fallen 0.9% in premarket trading, to $785.5. Although BLK climbed nearly 25% in the last three months, the stock has fallen 2.36% this year.

BlackRock in the News for Global Infrastructure Partners Acquisition Along with Q4 2023 Earnings Announcement

BlackRock’s acquisition of Global Infrastructure Partners is part of the asset manager’s focus on infrastructure and penetration into private markets. The deal, expected to close in the second quarter of the year, is worth $12 billion in shares of BlackRock’s common stock, and $3 billion in cash.

In a statement, BlackRock Chairman and CEO Larry Fink said:

“The combination of BlackRock infrastructure with GIP will make us the second largest private market infrastructure manager with over $150 billion in total AUM, providing clients – especially those saving for retirement – with the high-coupon, inflation-protected, long-duration investments they need.”

BlackRock Inc is one of 11 applicants that received approval for spot Bitcoin exchange-traded funds (ETFs) from the United States Securities and Exchange Commission (SEC). On the first day of trading, the total volume of ETFs crossed $4 billion, with BlackRock accounting for $924 million, below Grayscale’s $1.9 billion.

Estimates for the trading volume of ETFs are considerably bullish. According to Bernstein analysts, the total could cross $10 billion this year. Interestingly, Standard Chartered analysts are a lot more bullish. The analysts believe that the ETFs could attract up to $100 billion before the end of this year. Also, the analysts believe that this could potentially push Bitcoin’s price up to $100,000.

Nonetheless, other analysts have sounded notes of caution. According to them, the excitement surrounding Bitcoin ETFs might be prematurely grand, only as a result of approval after a long period of application. For others, there is simply no real need for a Bitcoin investment. According to Robert Arnott, the chairman and founder of consultancy and asset management firm Research Affiliates, Bitcoin is simply a “speculative vehicle” and not an asset or a currency.” He added that as long as investors know what they are doing, there is nothing wrong with speculative vehicles.

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