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Vanguard Group, which manages $7.2 trillion in assets, has significantly ramped up its investments in the bitcoin mining sector, with its total stake now exceeding $560 million.
Vanguards bitcoin mining investments
The company has been snapping up shares of Marathon Digital and Riot Platforms, two major players in the Bitcoin mining space. Vanguard now holds 17.5 million shares of Marathon Digital, a 60% increase from its previous position. Given Marathon's current share price of $16.03, this puts the value of Vanguard's investment at a cool $280.5 million.
But Vanguard didn't stop there. It also boosted its holdings in Riot Blockchain, a Colorado-based Bitcoin miner. Vanguard now owns 17.9 million shares of Riot, an 18% increase from its previous stake. This additional investment is worth over $281 million, pushing Vanguard's total investment in Bitcoin mining firms to a whopping $560 million.
An institutional change of heart
This is all quite surprising given Vanguard's stance just two years ago. Back then, the company had been very sceptical about the long-term investment potential of cryptocurrencies. However, much water has since flowed under the bridge and now Vanguard has become the largest shareholder of Marathon Digital.
Not just Vanguard, but the broader financial industry, seems to be warming up to cryptocurrencies. Last week, BlackRock CEO Larry Fink described Bitcoin as an "international asset”, and “digitised gold". BlackRock, which manages $9.5 trillion in assets, recently applied to the SEC for a Bitcoin exchange-traded fund. It's also the second-largest investor in Marathon Digital.
Bitcoin mining big business
Bitcoin mining, once a niche activity, has evolved into a big business. Today's miners are large operations that use server farms and consume a lot of energy. In return for their efforts in verifying blockchain transactions, they're rewarded with newly minted Bitcoins. It's a high-stakes game, and it seems Vanguard is betting big on its players.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.