BlackRock bought $384 million in Bitcoin mining stocks, according to a Twitter post on the Bitcoin comment section.
It is a known fact that the price of Bitcoin reversed its upward trajectory after hitting over $65,000. Bitcoin began to suffer substantial losses when Tesla CEO Elon Musk made a negative remark about BTC mining.
The energy consumption of Bitcoin mining was brought up by Musk, who expressed worry about the impact of Bitcoin mining on the ecosystem.
Following Musk’s remark and Tesla’s move to halt Bitcoin payments, BTC started to fall. The event elicited a wide range of responses from traders and investors.
Cathie Wood, the founder of Ark Investment Management, claimed that Musk made the remark owing to criticism from institutional investors including BlackRock Inc.
Perhaps it’s a good thing for some that #Bitcoin is not yet regulated. 🥸
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) August 19, 2021
BlackRock is Tesla’s third-largest stakeholder. As per Wood, BlackRock complained about Bitcoin mining, which prompted Musk’s remark, resulting in a drop in Bitcoin’s valuation.Following the purchase of a stake in two publicly listed Bitcoin mining mining companies, BlackRock has now turned out to be a full-fledged Bitcoin mining investor.
BlackRock invested in Marathon Digital Holdings and Riot Blockchain, as per a filing with the Securities and Exchange Commission (SEC) on June 30th. According to the report, BlackRock holds 6.71% of Marathon Digital Holdings and 6.6% of Riot Blockchain.
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.
— Elon Musk (@elonmusk) May 24, 2021
The company spent roughly $207 million on Marathon blockchain equities and then another $176 million on Riot blockchain shares. The investment management firm spent nearly $384 million in Bitcoin mining equities in altogether.
During the height of the Bitcoin mining crisis, Musk and MicroStrategy CEO Michael Saylor interacted with North American Bitcoin miners. In a tweet, Tesla CEO Elon Musk said that the conversation was “possibly fruitful.”
The conference was attended by Marathon Digital Holdings and Riot Blockchain. Musk said that following months of banning Bitcoin payments for Tesla cars, the electric vehicle (EV) firm will shortly resume taking BTC. On July 21st, the CEO of the automobile business made an announcement at the B-Word conference sponsored by the Cryptocurrency Council for development. During his speech, Musk stated that Bitcoin miners are currently utilizing greener energy.
Furthermore, he stated, “I want to conduct a bit more due diligence to ensure that the proportion of renewable energy use is most probably at or over 50% and a tendency toward improving that figure. If that is the case, Tesla will very certainly restart taking bitcoin.”