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- BlackRock is a major shareholder in Riot, Marathon, Cipher, and Hut 8, four of the five largest Bitcoin mining companies by market cap.
- The investment giant has steadily increased its holdings in these mining companies, despite the Bitcoin mining industry facing challenges.
In a tweet that has garnered significant attention within the cryptocurrency community, independent blockchain researcher and crypto-journalist Collin Brown [@CollinBrownBTC] underscores BlackRock’s calculated entry into the Bitcoin mining sector.
https://twitter.com/CollinBrownBTC/status/1696366826026840549
This statement aligns with a recent analytical piece by Finbold.com, which corroborates BlackRock’s influential role as a major shareholder in four of the world’s five largest Bitcoin mining companies by market capitalization.
Diving Into Market Capitalization
According to CompaniesMarketCap Index, the market capitalization of the top five Bitcoin mining companies amounts to $5.4 billion. Here’s how it breaks down:
- 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
Weathering the Storm in Bitcoin Mining
It’s no secret that the Bitcoin mining sector has been hit hard by various challenges, including increased mining difficulty and reduced profits. Data indicates that most miners have been operating ‘underwater’ for over a year. However, BlackRock seems to see these difficulties as opportunities.
Increasing Shares Despite Industry Struggles
Data provided by Finbold reveals that as of June 30, BlackRock Fund Advisors ramped up their investments in these companies, strengthening their position as the second-largest shareholders. The specifics are as follows:
- RIOT: 10,749,369 shares (6.14%), worth $199.08 million
- MARA: 10,938,032 shares (6.44%), worth $190 million
- CIFR: 2,200,654 shares (0.88%), worth $8.36 million
- WULF: 4,831,312 shares (2.28%), worth $14.10 million
This positions sum up to a total value of approximately $411.54 million, which, though significant, represents only about 0.35% of BlackRock’s reported $117.6 billion in assets as of 2022.
A Dominant Voice in Policy Making
Given its major holdings, BlackRock is also a substantial member of the Bitcoin Mining Council, a lobbying group aimed at representing the Bitcoin mining industry in the United States. This strategic alignment and continued investment in Bitcoin mining firms signify that BlackRock sees a robust future for Bitcoin mining, even amidst the industry’s present challenges.
