Tuesday, October 20, 2020

Fidelity Investments invests big in Bitcoin mining as institutions want crypto

Must Read

Double Your Money in 6 Months With Unlisted?!

Judd Armstrong from Unlisted claims to have cracked the code with cryptocurrency trading. Trading liquid assets like Bitcoin and Ethereum, he talks about the...

In June, $2 trillion asset manager Fidelity Investments published a report on institutional investment in the Bitcoin and crypto industry.

The Wall Street giant found that “digital assets are gaining in favorability and appeal amongst institutional investors, with almost 80% of investors surveyed finding something appealing about the asset class.” Fidelity also found that 36 percent of institutions have exposure to the crypto market, with many of these firms owning either Bitcoin or Ethereum.

Only corroborating the trends displayed in the survey, Fidelity itself was recently revealed to have invested big in a Bitcoin mining company based in Canada.

Fidelity Investments goes big on Bitcoin mining

According to crypto research analyst Matt Yamamoto, when Canadian mining firm Hut 8 ran a $6.1 million June offering of shares, Fidelity Investments was the primary participant:

“Turns out Fidelity was the largest investor in Hut 8’s US$6.1M public offering from last month According to a recent filing, Fidelity purchased 71% of the “units” (combo of shares and warrants) sold in the offering Fidelity now owns 10.6% of Hut 8’s outstanding shares.”

Hut 8’s shares are listed on the Toronto Stock Exchange under the ticker of “HUT.” And the company was required to disclose Fidelity’s investor status due to securities laws in some jurisdictions which state that entities that own in excess of a certain percent of a company must divulge this.

HUT is seemingly benefiting from this news, gaining 6.19 percent during Jul. 13’s trading session, the first trading session since this news became common knowledge.

A wave of crypto mining investments

Fidelity Investments’ purchasing of Hut 8 shares is part of a wider wave of capital flowing into the Bitcoin mining space.

Core Scientific just recently bought around  17,500 of the newest SHA-256 ASIC devices from Bitmain, the crypto mining giant. This investment alone has the potential to add a solid chunk to Bitcoin’s hash rate.

Earlier this year, Layer1, a Peter Thiel-backed mining startup, began operations in Texas. The company wants to control 30 percent of all Bitcoin hash rate by the end of 2021.

These investments bode well for the price of BTC, analysts have said.

Digital asset manager Charles Edwards found in December that Bitcoin’s value can be somewhat predicted by making a formula factoring in the estimated energy consumption of the network.

His model currently says that with the recent spike in Bitcoin hash rate, BTC is trading 28 percent below its “Energy Value.” Edwards’ model says that BTC should currently be trading around $12,800.

A separate analysis by Edwards has also found that the recent surge in the hash rate has triggered the Hash Ribbons to print a “buy” signal. This is important as historical instances of the signal appearing has preceded some of Bitcoin’s largest macro rallies.

Like what you see? Subscribe for daily updates.

Popular This Week

Blockchain firm Monerium thinks Europe ‘already has’ a digital euro

Consensys-backed e-money issuer Monerium thinks the route to a digital euro is simpler than the European Central Bank suggests.The fintech, which focuses on bridging...

UBRI Connect Virtual – Day 2, Part 3

UBRI Connect Virtual is a multi-day conference around global time-zones that will showcase blockchain initiatives and accelerate academia’s collaborative involvement in the ecosystem. The...

The $1.76 Trillion Blockchain MOONSHOT! New ETH ATH, Crypto.com, VIDT + IBM, JP Morgan

Max Keiser on Bitcoin | Mexican Crypto Art | Crypto.com 5 million users | Defining DeFi | Ethereum ETH new All Time High Hashrate...

CoinDesk Joins IMF, CFTC, Swiss FINMA at DC Fintech Week

CoinDesk is partnering with DC Fintech Week, one of the world’s premier policy and regulation-focused digital currency conferences, to produce a special edition of...

Will a Sharded Ethereum Be Flexible Enough for Decentralized Finance?

“Money legos” might be an apt metaphor for what decentralized finance (DeFi) does, but since the summer another one has applied: jackpot.Money legos is...

Bitcoin Big Buy Signal, 500% Surge, CBDC Launch, JP Morgan + Bitcoin & Bitcoin Cruise Ship

NEW CHANNEL: https://www.youtube.com/channel/UCH9HlTrjyLmLRS0iE1P4rrg I also play video games! https://www.youtube.com/channel/UCvXjP6h0_4CSBPVgHqfO-UA ------------------------------------------ Fidelity Report: https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/bitcoin-alternative-investment.pdf ------------------------------------------- Rich Dad Poor Dad: https://amzn.to/3cKJ4Ia Computer I Use To Record: https://amzn.to/2V2F3bn Headphones I Use: https://amzn.to/3ccAUrf Chair I use: https://amzn.to/2XpUmg5 My Desk: https://amzn.to/3ei7mtZ I love this Mic: https://amzn.to/2yUElV9 ---------------------------------------------------------------------------- Support Me On...

Retail investors will ‘undoubtedly’ move to Bitcoin, says Fidelity

Fidelity Digital Assets, the cryptocurrency custody and execution arm of United States financial services giant Fidelity, has claimed in a new report that retail...

Cruise ship ‘Satoshi’ to house crypto companies and digital nomads

Ocean Builders, a company that builds “floating, off-grid seapod homes,” has bought an old Australian cruise ship it renamed ‘Satoshi’ and plans to fill...