BlackRock (NYSE: BLK) — one of the largest investment companies in the world — is positioning itself in the Bitcoin (BTC) mining industry. The investment giant is already the second-largest shareholder in four out of the five biggest Bitcoin miners by market capitalization.
According to the CompaniesMarketCap Index, the five largest Bitcoin miners sum up to $5.4 billion in market capitalization, and have registered massive losses in the last 30 days:
- Riot Platforms Inc. (NASDAQ:RIOT): $1.92 billion market cap
- Marathon Digital Holdings Inc (NASDAQ:MARA): $1.83 billion market cap
- Cipher Mining Inc (NASDAQ:CIFR): $0.74 billion market cap
- Hut 8 Mining Corp (NASDAQ:HUT): $0.50 billion market cap
- Terawulf Inc (NASDAQ:WULF): $0.41 billion market cap
BlackRock is buying the dip for Bitcoin mining companies
The Bitcoin mining industry is going through a delicate moment as the mining difficulty continues to increase, also increasing the costs of the activity and reducing the expected profits for the majority of Bitcoin miners — who are, on average, operating ‘underwater’ for over a year.
Interestingly, the struggles for small and medium miners can also pose an opportunity for larger companies with easier access to capital, that are able to survive and grow in challenging times. An opportunity that seems to have been spotted by BlackRock, which continues to increase its position as a major shareholder among the largest four mining companies in the United States.
Data retrieved by Finbold from CNN shows that BlackRock Fund Advisors increased their position in these Bitcoin miners on June 30, consolidating their second place as the largest shareholders position, as follows:
- RIOT: 10,749,369 shares (6.14%), for a total value of $199.08 million;
- MARA: 10,938,032 shares (6.44%), for a total value of $190 million;
- CIFR: 2,200,654 shares (0.88%), for a total value of $8.36 million;
- WULF: 4,831,312 shares (2.28%), for a total value of $14.10 million.
Notably, the built position suming to a total value of around $411.54 million, equals to a small share of 0.35% of the $117.6 billion in assets that BlackRock holds, as reported in 2022.
This current position also makes the BlackRock Funds Advisors a major member of the Bitcoin Mining Council, a lobbying group for the Bitcoin mining industry in the US.
