On June 28, Microstrategy, led by crypto advocate Michael Saylor, acquired an additional 12,333 Bitcoin for $347 million, as reported by SEC filings. This move demonstrates the company’s strong belief in Bitcoin. The average purchase price was around $28,136. With this purchase, Microstrategy now holds a total of 152,333 Bitcoin, valued at more than $4.5 billion based on the current Bitcoin price of about $30,700.
Recently, Vanguard Group, the second-largest asset manager in the world after BlackRock, increased its investment in North American-based Bitcoin mining firms Marathon Digital Holdings and Riot Blockchain, according to filings submitted to the U.S. Securities and Exchange Commission (SEC) on July 10, 2023.
Vanguard now owns 17.5 million shares in Marathon, representing a 60% increase from its previous investment in February. This amounts to a 10.31% stake in the company. Additionally, Vanguard owns 17.9 million shares of Riot Blockchain, which is Marathon’s main competitor. This investment represents an 18% increase since February and accounts for 10.24% of Riot.
Based on the current stock prices, Vanguard’s holdings in Marathon are valued at $305.73 million, while its holdings in Riot are valued at $313.97 million. Combined, these investments represent a stake in two leading Bitcoin mining firms worth a total of $619.7 million.
Despite its increased investment in these mining companies, Vanguard has generally shown interest in cryptocurrencies. The company did not file an application for a Bitcoin exchange-traded fund (ETF) alongside BlackRock and Fidelity in June.
In April 2022, Vanguard published a statement cautioning about the volatility, high commissions, and speculative nature of cryptocurrencies. While the company has invested in Bitcoin mining firms, it has discouraged direct investments in crypto assets. On the other hand, it is also observed that miners are massively sending their Bitcoin to the exchange, indicating potential developments, whereas institutional investors and asset management firms are showing their interest in Bitcoin and other cryptocurrencies.
This type of investment into the mining sector encourages the miners and attracts more miners to take participate in the mining and also attract investors into the cryptocurrency market. Recently, Jack Dorsey’s Block wants to build a DIY mining kit to improve Bitcoin mining rigs and also promote mining innovation.