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Giant fund manager Fidelity International owns roughly 10.6% stake in bitcoin mining company Hut 8. For six years now, Fidelity, the company that currently manages $ 8 trillion on behalf of its clients, has been mining the cryptocurrency. bitcoin.
In May 2017, news.Bitcoin.com reported that Fidelity integrates with Coinbase, mines bitcoin, and also accepts the digital asset at the company’s coffee shop at its headquarters. Fidelity has been mining bitcoin since 2014 and over the years the company has increased its stake in this growing industry.
On June 10, a new Alternative Monthly Reports (AMR) disclosure recently filed with the Ontario Securities Commission (OSC) shows that Fidelity owns approximately 10.6% of the shares in mining company Hut 8.
Just recently Hut 8 Mining Corp. raised $ 8.3 million by selling shares to investors and intends to add 275 PH / s of mining capacity to existing operations. The regulatory filing with the OSC shows that Fidelity International holds a large number of Hut 8 shares.
“Fidelity holds 8,396,138 ordinary shares and 2,054,956 warrants for the purchase of ordinary shares, for which it is believed that Fidelity holds 10,451,094 ordinary shares representing approximately 10.58% of the outstanding shares of that class”, reads in the Hut 8 AMR.
A look at the composition of the shares indicates that Fidelity holds a number of common shares and also has the ability to collect more shares in the future.
Of course, Fidelity discloses that “the funds and accounts managed by Fidelity that hold the securities mentioned herein may, from time to time, lend some or all of the securities under the securities lending arrangements for such periods of time.”
“The common stock and warrants of Hut 8 Mining Corp. were acquired in the ordinary course of business, for investment purposes only and not for the purpose of exercising control or direction over Hut 8 Mining Corp,” notes ARM.
ARM was invoked after Hut 8 raised $ 8.3 million by selling shares to investors during the underwritten public offering. In order to add 275 PH / s of mining capacity, Hut 8 specified that it plans to purchase Whatsminer series mining rigs (M30S, M31S, M31S +) from Chinese manufacturer Microbt.
Hut 8 began its mining operations in 2017 and was listed on the Toronto Stock Exchange in the spring of 2018. Bitcoin advocates on social media and digital currency-focused forums seemed pleased with Fidelity’s growing participation in Hut 8 mining. One person tweeted that with Bitcoin mining difficulty at a record level, “Fidelity is betting heavily on Bitcoin mining.”
During the morning trading sessions, the HUTMF stock charts on Trading View had shown that the price was hovering at $ 0.82 each, but since Fidelity’s announcement it has risen to $ 0.8758.
What do you think of Fidelity betting big on bitcoin mining? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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