Fidelity acquires over 10% of shares in mining provider Hut 8
CONTENT

  • Major American financial conglomerate has invested in the Canadian mining giant.

  • So far Fidelity is at -39% loss.

  • The company associates the decision to invest in Hut 8 with the economic situation in the mining market.

International consortium of news organizations developing transparency standards.

Fidelity Investments, one of the world’s largest asset managers, owns over 10% of shares in the largest mining company in North America.

Fidelity Investments, a large investment holding company, became the owner of 10.58% of the shares of the mining company Hut 8.

According to the Ontario Securities Commission’s published monthly activity report, Fidelity owns about 10.6% of the shares of the Canadian public cryptocurrency mining company Hut 8..

The document notes that Fidelity owns 10,451,094 (10.58%) shares of Hut 8.

Canadian mining provider Hut 8 has been on the cryptocurrency market since 2011.

Unprofitable prospect

In June, the company announced the completion of a public offering of shares through which it issued 5,750,456 shares at a price of $ 1.45. The total gross revenue of the company was $ 8.3 million.

Fidelity acquires over 10% of shares in mining provider Hut 8

Since the listing of Hut 8 on the Toronto Stock Exchange, its price has dropped more than 75%.

At the time of this writing, HUTMF’s share price is $ 0.88, and the company’s market capitalization exceeds $ 85 million.

In a comment to The Block, a Fidelity spokesman said the decision to buy Hut 8 shares was due to the company’s optimal location, the equipment purchased, and “the economic environment for the mining industry as a whole.”.

At the dawn of the industry

Fidelity has been following the virtual asset market for a long time. In early June, the company published the results of a survey of nearly 800 investors from the US and Europe..

According to published data, almost 80% of surveyed institutional investors view cryptocurrencies as a new asset class positively..

Moreover, more than a third have already invested directly or indirectly in this market.

Meanwhile, the American mining market is actively gaining momentum.

8 Mines You Can Work At In Canada

The BeInCrypto editorial staff previously wrote that the American blockchain company Core Scientific signed an agreement to acquire over 17,000 bitcoin mining farms from one of the leading manufacturers of mining equipment – Bitmain.

What do you think? Will Fidelity’s investment pay off in the long term? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

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