Vanguard Takes the Bitcoin Leap, Invests 0 Million in Crypto Mining Stocks

17 July 2023

Welcome and thank you for being part of the MyZucoins community! Dive into some important crypto, finance and tech news to stay ahead.

The formidable asset manager, Vanguard Group, has significantly expanded its Bitcoin mining stocks portfolio. According to recent reports filed with the U.S. Securities and Exchange Commission, Vanguard has amassed over $560 million in Riot Blockchain and Marathon Digital shares.

The data provided shows an impressive uptick in Vanguard’s holdings. Marathon Digital saw an increase of 60%, evolving from 10.9 million to 17.5 million shares, translating into an astounding $280.5 million investment. Riot Blockchain, the biggest cryptocurrency miner in America, also felt the Vanguard effect, experiencing an 18% hike in their shares, climbing from 15.2 million to 17.9 million. This corresponds to over $281 million in stocks.

Despite expressing skepticism about the longevity of cryptocurrencies as an investment option two years ago, Vanguard has certainly changed its tune, even becoming Marathon Digital's biggest shareholder. Bitcoin and other cryptocurrencies have caught the eye of the financial titans, as observed by a surge of institutional interest.

BlackRock, the planet's biggest asset manager with a tremendous portfolio of $9.5 trillion, speaks to this trend. Their CEO recently labeled Bitcoin as an "international asset,” and they command second place in the Marathon Digital shares race. Meanwhile, many other major fund managers are scrambling for a piece of the Bitcoin ETF action. Bitcoin mining, the engine room of verifying blockchain transactions, has soared to big business status. Read more here.

How Splitchain Navigates the Crypto Mining Scene?

Taking a cue from Bitcoin miners, Zucoins' underlying Splitchain network has carefully sidestepped the method of mining. Instead, it has established itself on the principles of fairness, efficiency and reducing environmental impact, amongst many other factors.

By not following in the footsteps of traditional cryptocurrencies, where more money allows power consolidation to buy more mining machines and access to cheaper sources of energy (inevitably leading to a race to cheap oil), thus gaining control of the network, Splitchain is going after a different basis for decentralization, one that steers centralisation away from this metric.

Splitchain's decentralization journey that started centralized and gradually spreads outwards over time. This approach likens itself to the beginnings of Bitcoin itself. Which, in itself was a niche, left-field system that was understood and used by at first Satoshi himself, then only a few and has since become a popular and now "traditional" blockchain in just over 10 years.

Targeting a more user-friendly experience, Zucoins aims for a broader audience. This is a move that could potentially resonate with institutional investors in future, who once looked at cryptocurrencies with skepticism but now hold hundreds of millions in crypto investments.

Zucoins has also adopted another neat approach—it does its part in preparing for big price swings. This is reflected in its underlying Splitchain system supporting 32 decimal places (that can be extended further), ensuring micro-transactions remain feasible during major price variations.

While Bitcoin rides a wave of institutional investment, Zucoins, with their next-generation left-field Splitchain network, is set to chart its own course in the vast crypto seas. Bitcoin mining may be turning into big business, yet emerging potential powerhouses like Zucoins are avoiding this mining model and focusing on more diversified and inclusive network strategies. In turn, a cornerstone of what decentralized networks are supposed to be.

Crypto Sponsorships: Innovations in Payment and Tokenization

Cryptocurrencies are transforming global industry sponsorships as businesses see these digital assets' potential benefits. Crypto sponsorships present a streamlined transaction approach, avoiding traditional payment complexities and unnecessary intermediaries. By exploiting blockchain technology, direct peer-to-peer payments occur quickly and reliably, saving costs by avoiding traditional banking institutions and transaction fees.

Tokens, another offspring of these sponsorships, have amplified fan engagement, adding a sense of ownership and loyalty. Fungible assets like these can be bought, received as gifts, or won through participation, granting fans access to unique events and items. They also provide an additional revenue stream with the creation of limited-edition tokens.

By introducing smart contracts and escrow services, risk proves less daunting, adding to the allure of cryptocurrency sponsorships. Smart contracts, blockchain-based agreements, enforce conditions without intermediaries, reducing the threat of fraud—escrow services further secure payments, releasing funds only after the deal's terms are fulfilled.

Mixing gaming strategies with crypto sponsorships, gamification has amplified fan engagement, reinforced brand loyalty, escalated social sharing and demystified the complexities of cryptocurrency. However, as the crypto sponsorship arena evolves, regulatory oversight becomes paramount. Compliance with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations is crucial. An active dialogue between sponsors, recipients and regulatory bodies can pave the way for sustainable practices within the industry. Cautiously, some point to the future prospects of interplay with Non-Fungible Tokens (NFTs) and Central Bank Digital Currencies (CBDCs) in crypto sponsorships, providing an even grander scope of opportunities, but risks must be considered. Read more here.

If you liked this newsletter, please forward it to someone who might like it too.

What did you think of this newsletter? Reply to send us feedback on what you liked or want to see featured more. There’s more coming, so stay tuned.

—

All the best,
Rob & Peter
MyZucoins

Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.