BlackRock’s Bitcoin strategy involves investments in top mining companies BlackRock’s Bitcoin strategy involves investments in top mining companies
BlackRock has a pending spot Bitcoin ETF application before the U.S. Securities and Exchange Commission (SEC).
2 min read
Updated: Aug. 28, 2023 at 5:43 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The world’s largest asset manager, BlackRock, is increasing its exposure to Bitcoin by investing in the top five miners of the flagship digital asset.
According to the CompaniesMarketCap index, the top five Bitcoin miners are Riot Platforms, worth $1.92 billion; Marathon Digital, $1.83 billion; Cipher Mining, $0.74 million; Hut 8 Mining, $0.5 billion; and TeraWulf Inc, $0.41 billion. Of these five, it is only Hut 8 that BlackRock has yet to invest in.
Due to Bitcoin’s recent price struggles, these miners have lost between 11% and 42% of their stock value in the past month. BlackRock took advantage of this dip to increase its position as a significant shareholder across these firms.
Per available data, the asset manager increased its holdings to 6.14% in Riot shares, 6.44% at Marathon Digital, 0.88% in Cipher Mining, and 2.88% in TeraWulf. Its total holdings in these miners amount to approximately $411.54 million.
Bitcoin ETF
Meanwhile, mining is one of the many ways BlackRock has exposure to BTC. The asset manager has a pending application before the U.S. Securities and Exchange Commission (SEC) to list a spot Bitcoin ETF.
In June, the asset manager’s application triggered a wave of similar applications from other traditional financial institutions like Invesco, Fidelity Investments, Ark Invest, and others. At the time, CryptoSlate Research pointed out that the flurry of applications sparked a massive BTC accumulation within the U.S.
Meanwhile, the firm’s CEO Larry Fink also revealed its changed approach toward crypto investments. Fink said the flagship digital asset was digitalizing gold, adding that it was an “international asset.”
In one of his interviews, Fink said:
“Bitcoin is not based on any one currency, and so it can represent an asset that people can play as an alternative. It’s digitalizing gold in many ways. Instead of investing in gold as a hedge against the onerous problems of any one country or the devaluation of your currency of whatever country you’re in, Bitcoin is an international asset.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Riot Platforms
Riot Platforms is a bitcoin mining company, supporting the Bitcoin blockchain through rapidly expanding industrial-scale mining focused in the United States.
Marathon Digital
Marathon Digital Holdings is a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets.