BlackRock’s Growing Interest in Bitcoin Mining Companies
BlackRock, the largest asset manager globally with $9.42 trillion in assets under management (AUM), has been showing a significant interest in cryptocurrencies, particularly Bitcoin. In fact, the company is a major shareholder in four out of the five largest Bitcoin miners. Additionally, BlackRock has applied to launch a spot Bitcoin ETF through its ETFs arm, iShares.
BlackRock’s Investment Portfolio in US Bitcoin Mining Companies
BlackRock has actively increased its position in publicly traded Bitcoin mining companies in the United States. The company holds shares in all US-based public Bitcoin mining companies except for Core Scientific Inc. Marathon Digital Holdings is currently the largest Bitcoin mining company with a market capitalization of $4.07 billion, followed by Riot Blockchain with $3.22 billion and CleanSpark with $1.96 billion.
Cipher Mining, TeraWulf, BitDigital, Stronghold Digital Mining, and Greenidge Generation Holdings are other Bitcoin mining companies with less than $1 billion capitalization that are part of BlackRock’s investment portfolio.
BlackRock’s Shares in US Bitcoin Mining Companies
According to data retrieved from CNN Business, BlackRock has increased its position in most of these companies while selling shares in others. The company now owns 11,206,584 shares (5.30%) of Marathon Digital Holdings worth $98.73 million and 11,215,047 shares (5.65%) of Riot Blockchain worth $109.68 million.
BlackRock also holds positions in Cipher Mining ($8.95 million), TeraWulf ($9.47 million), and CleanSpark ($33.68 million). However, it has sold 11,042 shares of BitDigital worth $8.59 million.
Both Stronghold Digital Mining and Greenidge Generation Holdings constitute the smallest percentage of BlackRock’s ownership in Bitcoin mining companies.
The Competitive and Uncertain Nature of Bitcoin Mining
It is worth noting that all publicly traded Bitcoin mining companies have had negative earnings since their inception. However, this has not deterred BlackRock from increasing its position as a major shareholder. The Bitcoin mining business is highly competitive and dependent on the price performance of BTC. Despite the challenges, BlackRock’s growing interest in Bitcoin mining companies indicates its confidence in the long-term potential of cryptocurrencies.
Hot Take: BlackRock Sees Promise in Bitcoin Mining
BlackRock, the world’s largest asset manager, is making significant investments in US-based Bitcoin mining companies. This move demonstrates BlackRock’s growing interest and confidence in the potential of cryptocurrencies. Despite the volatile nature of the Bitcoin mining business, BlackRock sees long-term value in these companies and has increased its positions in most of them. This strategic move aligns with BlackRock’s overall goal of diversifying its investment portfolio and capitalizing on emerging trends. By becoming a major shareholder in Bitcoin mining companies, BlackRock positions itself to benefit from the future growth and development of the cryptocurrency industry.
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