- An SEC filing revealed that BlackRock has invested nearly $384 million in Bitcoin mining companies.
- The company now has a 6.6 percent stake in Riot Blockchain and a 6.71 percent stake in Marathon Digital Holdings.
Bitcoin analytic and commentary Twitter account, Bitcoin Archive, has pointed to the recent action by investment management company BlackRock after pressuring Tesla on Bitcoin mining emission. In a Twitter thread, the Bitcoin commentary page highlighted that BlackRock purchased $384 million worth of Bitcoin mining stocks.
It is no news that the value of Bitcoin took a U-turn from an upward trend after reaching nearly $65,000. Bitcoin started recording significant losses after Tesla’s CEO, Elon Musk, made a discouraging comment on BTC mining. At the time, Musk mentioned the energy usage in Bitcoin mining, expressing environmental concerns.
Following Musk’s comment and Tesla’s decision to suspend Bitcoin payments, BTC began to plunge. The action raised a lot of reactions among traders and investors. The founder of Ark Investment Management, Cathie Wood, stated that Musk made the statement due to pressure from institutional investors, including BlackRock Inc. BlackRock is the third-largest shareholder at Tesla. According to Wood, BlackRock made complaints about Bitcoin mining, triggering Musk’s comment, which resulted in a crash in Bitcoin’s price.
BlackRock invests nearly $384 million in Bitcoin mining stocks
Now, BlackRock has become a Bitcoin mining investor after investing in two publicly traded Bitcoin mining giants. According to a filing submitted to the Securities and Exchange Commission (SEC) on the 30th of June, BlackRock invested in Marathon Digital Holdings and Riot Blockchain. The filing showed that BlackRock owns a 6.71 percent stake in Marathon Digital Holdings and a 6.6 percent stake in Riot Blockchain. Specifically, the firm bought about $207 million worth of Marathon and another $176 million worth of Riot blockchain stocks. In total, the investment management company invested almost $384 million in Bitcoin mining stocks.
Musk and MicroStrategy CEO Michael Saylor met with North American Bitcoin miners during the heat of the Bitcoin mining issue. The Tesla CEO stated in a tweet that the discussion was “potentially promising.” Marathon Digital Holdings and Riot Blockchain were among the attendees of the meeting.
Elon Musk: Tesla to resume accepting BTC payments
After months of suspending Bitcoin payments for Tesla vehicles, Musk stated that the electric vehicle (EV) company would soon be accepting BTC once again. The car company CEO gave the update at the B-Word conference hosted by the crypto council for innovation on the 21st of July.
While speaking, Musk said that Bitcoin miners are now using cleaner energy. In addition, he said:
I want to do a little more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50% and that there is a trend toward increasing that number. If so, Tesla will most likely resume accepting bitcoin.