Fund Manager Vanguard Increases Stake In Bitcoin Mining Stocks To $600 Million

Scott Matherson

1 year ago

3 mins read

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Bitcoin mining is a topic that keeps popping up recently on the news concerning the crypto industry. And Vanguard, one of the world’s largest investment firms, has joined in on the action, as it has increased its stake in Bitcoin mining stocks to over half a billion dollars.

Vanguard Buys More Bitcoin Mining Stocks

When it comes to investing in the crypto industry, Vanguard seems to be exercising more caution compared to others. While investment companies like BlackRock are filing for Spot Bitcoin ETFs, Vanguard continues to increase its stake in Bitcoin mining.

According to its recent filings with the Securities and Exchange Commission (SEC), Vanguard, one of the world’s largest investment companies controlling assets worth over $7.2 trillion, has been increasing its investment in bitcoin mining companies. Recently, the investment company firm increased the number of Marathon Digital shares it had by 60% from 10.9 million shares to 17.5 million.

At the same time, it has increased the number of Riot Blockchain shares it owns to 17.9 million, an 18% increase from its previous 15.2 million shares. As a result of these investments, Vanguard now holds 10.24% of Riot and 10.31% of Marathon. Based on the current prices of the two companies’ stocks, this comes close to $600 million.

Stock Price Surges In Reaction To News

RIOT and Marathon Digital are two of the most successful cryptocurrency mining companies in the United States, with both planning to expand their mining operations. As one of the largest investment firms in the world, Vanguard’s move signals its belief 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 prices have already responded positively to this news, recording a 27% gain in the past 5 days, and it is now trading at $17.48, its highest price in over a year. Marathon Digital’s stock also followed suit, spiking 10% to now trade at $17.26.

The Future of Bitcoin Mining

Bitcoin is one of the few cryptocurrencies still operating a proof-of-work consensus algorithm, and its mining seems to have been seeing increased activity in recent times as miners reignite their activities on the blockchain.

According to a report by published by Coin Metrics on July 5, Bitcoin miners generated a revenue of $2.4 billion during the second quarter of 2023. Out of this amount, $184 million came from transaction fees alone, representing a figure higher than the five preceding quarters combined.

Miners are already preparing for the next Bitcoin halving event, which will slash block rewards from 6.25 BTC to 3.125 BTC. This will drastically reduce the rate at which new BTC is being brought into circulation, possibly triggering the next bull run.

Featured image from iStock, chart from TradingView.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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