One of the greatest financial firms in the world, BlackRock (NYSE: BLK), is setting up shop in the Bitcoin (BTC) mining market. Among the top five Bitcoin miners, the investing giant is already the second-largest shareholder in four of them.
The five biggest Bitcoin miners have a combined market worth of $5.4 billion, according to the CompaniesMarketCap Index, yet have lost a staggering amount of money during the last 30 days:
Bitcoin miners are in an untenable situation right now as mining difficulty rises with rising expenses and falling predicted returns. On average, Bitcoin miners have been “underwater” for more than a year.
Larger mining corporations with more resources at their disposal are better equipped to weather economic storms and emerge stronger from them. BlackRock seems to have seen this potential since the firm has recently increased its holdings in the top four U.S. mining corporations.
According to Finbold’s analysis of CNN data, BlackRock Fund Advisors became the second-largest stakeholder in these Bitcoin miners on June 30.
Importantly, the created position is worth only $411.54 million, or 0.35 percent of BlackRock’s $117.6 billion in assets as of 2022.
By holding this position, BlackRock Funds Advisors has become an integral part of the Bitcoin Mining Council, a US trade association representing the Bitcoin mining sector.
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