Fidelity Takes 10.6% Stake In Bitcoin Mining Firm Hut8

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.

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.

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