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Bitcoin mining is a topic that keeps coming up in the news related to the crypto industry lately. And Vanguard, one of the world’s largest investment firms, has gotten in on the action, as it increased its stake in bitcoin mining shares to more than half a billion dollars.
Vanguard buys more bitcoin mining stock
Vanguard appears to be more cautious than others when it comes to investing in the crypto industry. While investment firms such as BlackRock are applying for spot bitcoin ETFs, Vanguard is increasing its stake in bitcoin mining.
Vanguard, one of the world’s largest investment firms controlling more than $7.2 trillion in assets according to its most recent filing with the Securities and Exchange Commission (SEC), is increasing its investments in bitcoin mining companies. Recently, investment firm The Firm increased the number of Marathon Digital shares by 60% from 10.9 million shares to 17.5 million.
At the same time, the number of Riot Blockchain shares owned has increased to 17.9 million, up 18% from its previous holding of 15.2 million. As a result of these investments, Vanguard now owns 10.24% of Riot and 10.31% of Marathon. Based on the current prices of both the companies’ shares, this sits at close to $600 million.
Stock price jumps in response to the news
RIOT and Marathon Digital are two of the most successful cryptocurrency mining companies in the United States, both of whom are planning to expand their mining operations. As one of the world’s largest investment firms, Vanguard’s move signals its confidence in RIOT’s long-term growth potential.
BTC price still holding above $30,000 as institutional interest grows | Source: BTCUSD on TradingView.com
RIOT’s share price has already reacted positively to this news, registering a 27% gain in the past 5 days, and is now trading at $17.48, its highest price in over a year. Marathon Digital’s stock followed suit, rising 10% to now trade at $17.26.
future of bitcoin mining
Bitcoin is one of the few cryptocurrencies that still operates a proof-of-work consensus algorithm, and its mining has seen increased activity in recent days as miners resume their activities on the blockchain. Is done.
according to a reports Bitcoin miners to generate $2.4 billion in revenue during Q2 2023, published by Coin Metrics on July 5. Of this amount, $184 million came from transaction fees alone, which is higher than in the previous five quarters.
Miners Are Already Preparing for the Next Bitcoin event of halving, which will reduce the block reward from 6.25 BTC to 3.125 BTC. This will drastically reduce the rate at which new BTC is being put into circulation, potentially triggering the next bull run.
Featured Image from iStock, Chart from Tradingview.com
