Vanguard is increasingly investing in the crypto industry
Financial giant Vanguard is increasingly investing in the crypto industry. The second largest wealth manager in the world now holds shares in two crypto miners worth more than half a billion US dollars. Despite the bear market, the investment has already proven to be very successful.
This is how much financial giant Vanguard is investing in the crypto industry
After BlackRock, the world’s largest asset manager, announced its crypto commitment in June, Vanguard, the second largest asset manager, is now deepening its investments.
Unlike BlackRock, however, Vanguard prefers a more direct investment. Documents received by the US supervisory authority SEC on Monday show an acquisition of 2.7 million new shares. The money flows into crypto mining through the acquisition of shares in the company Riot Blockchain .
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Vanguard now owns 10.24 percent of Riot Blockchain. It is the largest bitcoin miner on earth. BlackRock also invested in the company in June 2021 and holds 6.80 percent of the shares.
Vanguards has been invested in Riot Blockchain since 2020 and has repeatedly increased the proportion of shares held over the past few months. The shares in the mining company are currently worth 295 million US dollars.
However, the investment company is investing further sums in the crypto industry – for example in Riot’s competitor Marathon Digital. Vanguard recently acquired 6.6 million shares in the crypto miner.
The shares in Marathon Digital now add up to a total value of 296 million US dollars.
Vanguard’s crypto miners are thriving
Vanguard’s crypto miners are thriving. The companies in which the company is a shareholder have each increased by around 400 percent over the past year. As the competition among crypto miners grows and the competition gets fiercer due to poor conditions, the shares have seen steady growth.
This is also remarkable in that the crypto market has been in a bear market since the end of 2021, which kept reaching new lows until the beginning of 2023.
The crypto mining industry is currently preparing for the next Bitcoin Halving. Many companies are creating new ASICs in order to mine as many BTC as possible until the event in April or May 2024.
The event, which takes place every four years, is considered one of the most important factors for bullish sentiment in the market. The Bitcoin that has now been mined will then be sold at what is expected to be significantly higher prices in the coming year.