Bitcoin Bank “Fidelity” Owns 10% Stake In Mining Firm

July 16, 2020, by Maayan
Fidelity, an investment management bank, has purchased stake in the Canadian Bitcoin mining company Hut8.

Fidelity International has bought shares in Hut8, a Canadian crypto mining firm that generates new Bitcoin.

The bank purchased 4.1 million “units” of shares last week, doubling its stake in Hut8 to 10%. The purchase was part of an $6.1 million   funding round carried out by Hut8 during an overnight offering.

Fidelity seems to be optimistic about Hut8’s future, as it purchased shares at prices well above their current trading value.

Fidelity’s Pro-Crypto Stance

Fidelity has historically been a Bitcoin-friendly bank. It began to offer crypto trading to institutional investors through Fidelity Digital Assets beginning in October 2018.

Fidelity has also backed the blockchain analytics company CoinMetrics, partnered with the crypto company ErisX, and invested in the Hong Kong-based exchange OSL.

Interest in Bitcoin among banks and institutional investors could help Bitcoin gain recognition and gain value.

Recent surveys from Fidelity suggest that up to 36% of institutional investors own cryptocurrency.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.