Fidelity Takes 10.6% Stake in Bitcoin Mining Firm Hut8

Monday, 13/07/2020 | 11:16 GMT by Arnab Shome
  • The asset manager invested in the recent underwritten public offering.
Fidelity Takes 10.6% Stake in Bitcoin Mining Firm Hut8
Reuters

Fidelity Investment, a major asset management company, holds a 10.6 percent stake in Hut8, a publicly-traded Canadian crypto mining company, according to a recent alternative monthly reporting (AMR) filed with the Ontario Securities Commission.

The AMR filing discloses the institutional investor’s shares in Canadian public companies.

First reported by The Block, the Boston-headquartered financial services company holds Hut8’s common shares and common share purchase warrants, which together make 10.6 percent of the firm.

“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,” the filing detailed.

Increasing mining capacity following Bitcoin halving

The AMR was filed on Friday following the mining company’s latest underwritten public offering of 5,750,456 units - each unit consisted of one common share and one common share purchase warrant - for $1.45 per unit, thus raising around $8.34 million.

These funds will be used in procuring several Bitcoin mining hardware including MicroBT's Whatsminer M30S, M31S, and M31S+.

Hut8 is one of the major crypto mining companies in North America and is aggressively expanding its operations. It saw a 66 percent mining revenue jump in 2019, resulting in a gain of $3.04 million for the year. However, in the first quarter of 2020, Hut8 reported a loss of $0.6 million in Adjusted EBITDA.

Hut8 is currently trading at a 65 percent discount from its listing price in 2016.

Meanwhile, Fidelity, despite being a mainstream financial services company, has a long-running interest in Cryptocurrencies . It is mining Bitcoin since 2014 and has also invested in other crypto-related startups including BC Group’s digital asset business OSL and Israeli Blockchain startup Clear.

Fidelity Investment, a major asset management company, holds a 10.6 percent stake in Hut8, a publicly-traded Canadian crypto mining company, according to a recent alternative monthly reporting (AMR) filed with the Ontario Securities Commission.

The AMR filing discloses the institutional investor’s shares in Canadian public companies.

First reported by The Block, the Boston-headquartered financial services company holds Hut8’s common shares and common share purchase warrants, which together make 10.6 percent of the firm.

“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,” the filing detailed.

Increasing mining capacity following Bitcoin halving

The AMR was filed on Friday following the mining company’s latest underwritten public offering of 5,750,456 units - each unit consisted of one common share and one common share purchase warrant - for $1.45 per unit, thus raising around $8.34 million.

These funds will be used in procuring several Bitcoin mining hardware including MicroBT's Whatsminer M30S, M31S, and M31S+.

Hut8 is one of the major crypto mining companies in North America and is aggressively expanding its operations. It saw a 66 percent mining revenue jump in 2019, resulting in a gain of $3.04 million for the year. However, in the first quarter of 2020, Hut8 reported a loss of $0.6 million in Adjusted EBITDA.

Hut8 is currently trading at a 65 percent discount from its listing price in 2016.

Meanwhile, Fidelity, despite being a mainstream financial services company, has a long-running interest in Cryptocurrencies . It is mining Bitcoin since 2014 and has also invested in other crypto-related startups including BC Group’s digital asset business OSL and Israeli Blockchain startup Clear.

About the Author: Arnab Shome
Arnab Shome
  • 6533 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6533 Articles
  • 87 Followers

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