06.12.2021

The largest investment firm in the world has invested millions in Bitcoin mining companies

International investment company BlackRock, whose assets under management exceed $ 9 trillion, has invested in American mining firms Marathon Digital Holdings and Riot Blockchain.

BlackRock now owns 6.71 percent and 6.61 percent of Marathon Digital Holdings and Riot Blockchain, respectively, according to filings with the Securities and Exchange Commission .

It seems that large investors have decided to make a big bet on the future prospects of the mining industry of the main cryptocurrency after the recent market recovery.

The market recovery has indeed taken place. For example, early this morning, Bitcoin surpassed the $ 50K level for the first time since mid-May. The local maximum of the rate was $ 50,399.

bitcoin chart rate

Bitcoin Hourly Chart

The positive is also noticeable in the top ten coins. The leader in daily growth here was the Cardano ADA, which gained 11.7 percent over the day. Today’s course is a record for the project.

The similar strength of the first cryptocurrency speaks of the complete dominance of the bulls – that is, investors who bet on the growth of the asset. In this regard, the interest of large players in niches related to cryptocurrencies seems to be quite justified.

Bitcoin mining is back in vogue

The dynamics of local growth in the popularity of mining can be compared with a gradual increase in the daily profitability of Bitcoin mining. According to the YCharts service, this figure recently crossed the $ 44 million level .

Here is a graph of experts showing this trend.

mining Bitcoin blockchain

Dynamics of the daily profitability of mining BTC over the past few months

Recall that a few months ago, about 70 percent of all miners placed their equipment in China, since the country has access to relatively cheap electricity. However, in late spring, the situation changed dramatically against the backdrop of government bans on cryptocurrency mining. Because of them, almost 90 percent of Chinese miners were forced to look for new regions for their activities, while a massive outage of equipment led to a decrease in the BTC hash rate by more than 50 percent .

mining Bitcoin blockchain

BTC hashrate dynamics over the past few months

According to Decrypt, the most popular places to move were the United States, Russia and Kazakhstan. America’s share of the total hashrate of Bitcoin recently rose to 17 percent, while the power of those miners still in China fell below 46 percent .

mining Bitcoin blockchain

Change in the share of countries in the hashrate of the BTC network during the spring market crash

The failures of Chinese competitors could be a prerequisite for the prosperity of American mining companies, which is why BlackRock decided to focus on the sector’s growth. The total investment in Marathon and Riot was $ 382 million. However, other funds like Fidelity Investments and Vanguard Group are also engaged in investments in mining. Both of these giants have also bought stakes in Marathon and Riot.

It is important to note that Marathon and Riot are public companies with Bitcoin in their portfolio. As of today, they are in fifth and tenth places in the overall ranking, respectively. Marathon holds 4,813 BTC, while Riot holds 1,175 BTC.

bitcoin investors company

Rating of public companies with Bitcoin in portfolio

In addition to the aforementioned mining companies, BlackRock also owns an impressive stake in MicroStrategy, the main professional Bitcoin investor. We will remind, the CEO of MicroStrategy Michael Sailor announced large purchases of Bitcoin last year and to this day his company has not sold a single coin.

Overall, BlackRock’s management has made a very promising bet. Bitcoin mining this year has proven its unprecedented resilience to even the most negative events. China used to have a huge impact on the crypto market, and therefore negative news from this country hit the price of BTC hard. But now, after the massive migration of local miners, the PRC no longer has big leverage on the cryptocurrency, and the mining industry itself is showing steady growth after a couple of months after negative events .

We believe BlackRock’s initiative resonates well with the current bull market in the cryptocurrency niche. I would like to believe that such investments will become a trend, and as a result, fewer giants will be afraid to contact companies that interact with cryptocurrencies.

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