Institutional Adoption Has Arrived - Vanguard Owns $560 Million in Bitcoin Mining Stocks
We've all waited quite a long time to see institutional money enter the Bitcoin space. To me, it was always the catalyst to see Bitcoin rocket beyond $100k and eventually reach $600k - which has been my target for what I think BTC should be valued at.
$600k isn't just a number. It's the value BTC would need to reach in order to flippen the market cap of Gold.
To me, Bitcoin is similar to Gold in many ways but superior in many ways as well. Thus, I have been long convinced that this long-term target of mine will be seen in the next 10-20 years (or sooner).
A long-term bet on BTC is easy when you believe it's going to do a 20x or more.
Institutional Adoption Has Arrived - Vanguard Owns $560 Million in Bitcoin Mining Stocks
According to Credit-Suisse:
"Aggregate global wealth totaled USD 463.6 trillion at the end of the year, a rise of USD 41.5 trillion or 9.8%. Wealth per adult was up 8.4% to reach USD 87,489 at year-end."
There is a lot of money out there. The global asset markets are massive and are only continuing to expand.
While I have always believed that institutional money would flood this space, things have changed quite a lot since I first created my thesis and plan to accumulate BTC.
Now we have a world of altcoins, the lightning network and many other innovations in the space. Does any of this change my outlook on BTC and it reaching Gold's Market Cap? No. If anything, it strengthens it.
According to some filings, Vanguard - which manages $7.2 Trillion - has increased its stake in 2 of the largest Bitcoin Miners in the U.S.
Riot Platforms is "a Bitcoin mining company, supporting the Bitcoin blockchain through rapidly expanding large-scale mining in the United States."
Their stock is currently trading for $17.25 per share and their market cap is $3B.
Marathon digital is "a digital asset technology company, which engages in mining cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets. The company was founded on February 23, 2010 and is headquartered in Las Vegas, NV".
They're trading at $17.12 with a market cap of $2.91B.
Vanguard owns $281M worth of Riot and $280.5M worth of Marathon. I found this quote to be interesting:
"Just two years ago, Vanguard Group said on its website that the long-term investment case of cryptocurrencies is “weak.” Now, it is Marathon Digital’s largest shareholder." Yahoo.
Institutional Flip
The institutional flip that we're seeing is exactly what we all expected. First they say you are nothing, then they call you a scam, then they go silent, then you find out they bought and then they come out and join you.
It's a game that we've seen play out a million times over and I don't think there are any signs of it stopping. We're seeing institutions dump money into this space whether it's buying MSTR stock, BTC outright or Bitcoin mining stocks.
Blackrock - with $9.5T in assets under management - is the second largest holder of Marathon Digital, just behind Vanguard who is now the largest shareholder.
Wen $600k?
To me, it's just a matter of time before we see Bitcoin hit this target of mine. It could be 2 years. It could be 20 years.
I don't know Wen, but I do know that it is coming. I believe Bitcoin will be one of the #1 asset classes in the world.
Even Larry Fink - the CEO of Blackrock - called Bitcoin an international asset and said that it was "digitizing gold". That's the exact thesis we are looking for.
If the largest financial players in the world jump on board with this vision, you better believe that it will happen. They move all the pieces. Our edge was getting to frontrun them as retail buyers of BTC for the past decade.
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Agreed Bitcoin has a value of $500k - $1 million easily and was always going to happen. This is great news for crypto in general as it will boost most crypto projects which is what we needed. Hive can do magical things and anything is possible price wise due to new money flowing into crypto.
Money flowing in is huge for the space in general
So many people fight regulation but it actually will be the best thing to happen. It just needs to be innovation-friendly
Regulation is what opens up the entire space and it has to happen for crypto adoption. I agree allow innovation to happen as crypto is the future.
Well the prices will go up and so will Hive's price
I like that
20 years is too long. lol.
I like every year doubling the price predictions.
If I were to predict, I would say 234k in 2025.
Haha well that is optimistic! I hope it is true but I like to set the aim for the long-term and be pleasantly surprised if it comes faster!
What happens when BlackRock, Vanguard, and State Street own a majority interest in >50% of miners?
Thanks!
I think it would take quite a lot more than this for them to own that many miners on a global scale
Remember: they can't invest in many of the foreign entities that mine BTC. This creates a bit of a safeguard
In the doomsday event that they own 51% of the network, the network can always be forked. Look at Hive - thriving better than ever today compared to Steem days
I don't think it will ever come to that, but it's nice to have that escape hatch if it ever does
Are you referring to state actors, or privately owned miners? Those may not be available. OTOH, everything is for sale for a price.
It's a common tactic they use. When they control the boards of the companies they own, they gain a significant degree of control of their investments, increasing their prudential security.
At least forking is potential, which isn't the case in many industries.
I have read your post very carefully and I just want to say that the information you shared is really great and I have learned a lot from it. slope