BlackRock, Inc. is now the world’s largest asset manager with $9.425 trillion assets under management (AUM). On the other hand, Bitcoin (BTC) remains the biggest cryptocurrency out there with a market cap of $851 billion at prevailing rates. With these, it comes as no surprise that everyone got so worked up when the two powerhouses in their respective industries intersected via a spot Bitcoin exchange traded fund (ETF).
BlackRock is still awaiting approval for its spot Bitcoin ETF filed under the US Securities and Exchange Commission. Given the recent developments, industry watchers are confident that the regulator may drop the gavel favorably by next month.
BlackRock’s Evolving Stance on Bitcoin
BlackRock CEO Larry Fink was once a major critic of cryptocurrencies, particularly Bitcoin. He once called BTC “an index of money laundering.” In a plot twist though, his company made news mid-2023 when its spot Bitcoin ETF filing was made public.
The event was one of the primary catalysts for the ongoing Bitcoin bull run. The public generally saw this as a recognition of the digital asset’s legitimacy and future potential.
However, some in the crypto community immediately frowned upon the idea that a company once discrediting Bitcoin is now riding on its coattails. Others raised also alarm over the company’s move for power consolidation in both the traditional financial (TradFi) and digital institutions. Moreover, there are fears that the entry of BlackRock and buddies at Wall Street could deconstruct BTC’s decentralized ethos.
BlackRock Takes More Bite in Bitcoin Mining
It appears BlackRock is not merely contented on disrupting the market with its spot Bitcoin ETF. The asset manager has been strategically placing its bets on Bitcoin miners, too.
BlackRock’s foray into Bitcoin mining came under the spotlight in August when people dug in deeper to find out its other moves toward the digital asset. From there, it was discovered that the financial giant had major stakes in four out of five of the world’s largest Bitcoin miners.
However, the trail does not end there. Recently, it was revealed that BlackRock continues to be highly involved in the Bitcoin mining industry as it just adjusted its positions on its stakes.
BlackRock’s portfolio adjustments improved its control of Marathon Digital at 11,206,584 shares valued at $98.7 million. It also brought its Riot Platforms ownership to 5.65% at 11,215,047 shares priced at $109.68 million.
In light of these events, the firm sold its 11,042 Bit Digital shares at $8.59 million. This earned the company 4,81% from the investment.
Meanwhile, BlackRock maintains a 1.07% stake in Cipher Mining, a 3.68% ownership in TeraWulf, a 0.37% control in Stronghold Digital, a 0.31% share in Greenidge Generation Holdings, and a 5.38% stake in Cleanspark.