BlackRock, the world’s largest asset management company, has been interested in cryptocurrencies for a while. With a massive client base and managing over $10 trillion in assets, the company is tapping into any area it sees opportunity for profit. He entered cryptocurrencies in June of this year. Following the Spot Bitcoin ETF application, the SEC’s first decision will be announced a few days later.
BlackRock has invested in four of the top five Bitcoin (BTC) mining companies by market capitalization. The company is currently the second largest shareholder of the top four mining companies. CompaniesMarketCap estimates the total market capitalization of companies BlackRock has invested in at $5.4 billion. The miners’ significant losses last month allowed BlackRock to buy shares cheaply and increase its presence in the industry.
Miners face increased profitability issues due to rising operating costs. BlackRock’s extensive financial resources allow the company to help relatively smaller mining companies. Its most recent investments were split between Riot Platforms Inc, Marathon Digital Holdings, Cipher Mining Inc, and TeraWulf Inc. The value of mining investments is approximately $411.5 million. This is definitely an important number, but when we consider the total assets of the company, this figure corresponds to about 0.35%.
The shares in the company’s reserve, the investments made represent the positions of its customers. The $10 trillion assets represent a wide variety of investor communities, which we can group into individual, corporate, family-owned, professional investors. BlackRock customers will have seen the growth potential in the crypto space, and they are focusing on investing in companies in many areas, including mining. Investing only in crypto mining companies? Of course not, MicroStrategy shares, which are seen as the unofficial Spot Bitcoin ETF, are also of great interest to the same investor group. This shows that they may have started to rise early next year due to the loosening of tight monetary policy, Bitcoin’s four-year cycles and many more. The decision for 7 spot Bitcoin ETF applications, including BlackRock, is expected to be announced on Friday. The odds of approval are thought to have increased as the SEC suffered a clear defeat against Grayscale yesterday.