Bitcoin Mining Firm Hut8’s 10.6 Stakes Obtained By Fidelity Investment

Jyoti  |  Jul 14, 2020

Ontario Securities Commission has recently filed an alternative monthly report (AMR) which states that 10.6 percent shares of Hut8 are owned by the major asset management company Fidelity Investment.

Hut8 is a crypto mining company which is based in Canada and allows public trading.

Hut8 Releases Secured Public Offering

According to a report, 10.6 percent shares which are now owned by Fidelity Investment comprises of Hut8’s common share and common share purchase warrants.

The AMR filing further stated, “Fidelity holds 8,396,138 Common Shares and 2,054,956 common share purchase warrants, as a result of which Fidelity is deemed to hold 10,451,094 Common Shares representing approximately 10.58% of the outstanding shares of that class”.

On July 10, as soon as Hut8 released its secured public offering of 5,750,456 units, the Boston-headquartered financial services company grabbed the opportunity and purchased it.

The unit offered by the mining company consisted of a common share and a common share purchase warrant, worth $1.45 per unit which gradually increased $8.34 million.

Hut8 To Buy Mining Instruments

The fund raised by Hut8 will be used by the company for purchasing many of the mining instruments like MicroBT, Whatsminer M30S, M31s and M31S+.

Since the year 2011, Hut8 has been operating in North America and has become one of the most popular and trustworthy crypto mining companies. In the year 2019, the profit earned by the company for the whole year reached $3.04 million, this happened because the mining company’s revenue surged 66 percent. But in the first quarter of 2020, it experienced a loss of $0.6 million.

Although Fidelity Investment is a financial service company, since a very long time, its interest in cryptocurrencies is increasing rapidly.

Since the year 2014, the investment firm is not only mining Bitcoin but also making its investment in other crypto-related startups.

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