Hut 8 Mining, the Canadian cryptocurrency mining company, is currently listed on the Toronto Stock Exchange. A recent regulatory document has just revealed that the huge Fidelity investment fund has bet big on Bitcoin mining activities, buying more than 10% of Hut 8 shares.
Fidelity institutional investors become BTC miners
The crypto-mining company Hut 8 submitted a monthly report to the Ontario Securities Commission on July 9. In this report, we learn that Fidelity Investments, a large multinational asset management company and cryptocurrency custody service, acquired around 10.6% of the shares in Hut 8.
The acquisition of shares was concluded outside the listing period, on the night of June 23, 2020. In its declaration by a new institutional investor in the company, Hut 8 details that:
“Fidelity holds 8,396,138 Common Shares and 2,054,956 common share purchase warrants,
as a result of which Fidelity is deemed to hold 10,451,094 Common Shares representing
approximately 10.58% of the outstanding shares of that class.”
A promising partnership between two large corporations
Hut 8 started mining in 2017 and happens to be one of the largest crypto-mining companies in Canada. It owns two major mining farms in the Canadian province of Alberta. The company is said to have already mined 12,305 BTC, more than $ 113 million at current prices.
For its part, Fidelity manages $ 7,300 billion in assets for its clients around the world. Although the investment fund became interested in Bitcoin in 2014, its arrival in the mining world is more recent. It started last year, with a first bet on the Blockstream Mining offer unveiled in August 2019.
Even though the movements of institutional investors in favor of cryptocurrencies are generally discreet, they are increasing in number. All this money invested shows a long-term confidence in this innovative sector, because this type of investor does not bet on short-term speculation.
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