BlackRock invests in Marathon and Riot, enters the BTC mining sector.
Blackrock, the world’s largest asset manager with $9 trillion in assets, has made a total capital commitment in two bitcoin miners, by acquiring significant stakes in Marathon Digital Holdings (6.71%) and in Riot Blockchain (6.61%).
This disclosure comes after SEC filings on June 30, which revealed that BlackRock's investment of around $382 million of shares in Bitcoin mining firms. This comes after Fidelity Group recently revealed its large stakes in the bitcoin miners.
The world’s largest asset manager has purchased nearly $207 million worth of Marathon and $176 million worth of Riot through some of its mutual funds and exchange-traded funds.
The investment in BTC related companies comes after BTC is up by roughly 288% over the past 12 months and because of the popularity of Bitcoin mining stocks as institutional investors are getting exposed to the crypto markets in the United States
While the Bitcoin prices continue to rise over the last 12 months, both companies’ stock rise, and fall in the price are on par with the performance of BTC. Marathon’s stock has surged 754% and Riot has gained 848%.
In recent months, top firms like Fidelity Group and Vanguard Group have been investing heavily in their cryptocurrency arm and getting exposure to the mining sector.
CBW - External Analyst