Vanguard Buys 10% Stake in Bitcoin Miner Riot: $500M Investment

12. Juli 2023 Aus Von admin

• Vanguard Group has purchased 10% stake in Bitcoin miner Riot Blockchain (RIOT).
• The $7 trillion asset management company now owns 17.9 million shares of RIOT, worth approximately $295 million.
• BlackRock CEO Larry Fink recently likened Bitcoin to “digital gold” and the firm has been increasing its exposure to the mining industry with time.

Vanguard Group’s Investment in Bitcoin Mining Industry

The world’s largest asset management giant Vanguard Group has recently upped its exposure to Riot Blockchain (NASDAQ: RIOT), by buying a 10.24% stake in the world’s largest Bitcoin mining company. According to a filing with the Securities and Exchange Commission (SEC) on Monday, Vanguard now owns 17.9 million shares of RIOT, which is worth approximately $295 million based on its current share price.

Riot Blockchain and Marathon Digital

Vanguard also bought millions of shares in competing firm Marathon Digital, increasing its holdings from 10.9 million shares to 17.5 million, which is roughly equal value to their investment in RIOT at $296 million. Both Riot and Marathon are up roughly 400% year to date, mimicking the trajectory of other mining firms and outperforming the gains of Bitcoin itself.

Preparation for Halving

Like many other mining firms, Riot has invested tens of millions of dollars into expanding mining infrastructure capacity this year in preparation for Bitcoin’s “halving” next year, which is widely believed to catalyze Bitcoin bull markets. With their doubled investments in both firms combined together – Vanguard now holds a total stake worth more than $500 million in two biggest players within the sector – Riot Blockchain and Marathon Digital – making it one of the most significant institutional exposures into it so far.

Skepticism Turning Into Bullishness

Two years ago, Vanguard claimed on its site that the investment potential in cryptocurrencies was “weak” but their half-a-billion dollar stake may indicate a change of heart as rival asset manager BlackRock is also growing more fond of crypto assets lately; once a skeptic, CEO Larry Fink likened Bitcoin to “digital gold” earlier this month signaling an increased appetite for cryptocurrency investments by major financial institutions worldwide as well as retail investors alike.

Conclusion. As institutional money continues pouring into cryptocurrency markets all around – it looks like an exciting future lies ahead for digital assets such as BTC and Ether as well as blockchain technology itself that helps power them; yet only time will tell if these bullish predictions become reality or not!