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CME Group Board of Directors Nominee Proposes the Company to Start Bitcoin Mining

UTC by Bhushan Akolkar · 2 min read
CME Group Board of Directors Nominee Proposes the Company to Start Bitcoin Mining
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The CME Group board of directors nominee has suggested that venturing into Bitcoin mining will help to create additional revenue streams for the shareholders.

Dante Federighi, a nominee for CME Group’s upcoming board of directors election, has proposed some steps for alternative revenue streams. We know that the CME Group was the first to launch Bitcoin futures contracts in the market in December 2017.

Federighi has suggested that the company should now start mining Bitcoin and other digital currencies. Federighi also outlined his vision for the CME Group in his letter to shareholders filed with the Securities and Exchange Commission (SEC). Besides, Federighi has also suggested building huge energy plants and divert the excess energy to Bitcoin mining. He wrote:

“Some of our largest investors, i.e. BlackRock, are shifting investments to companies focused on creating value for all their stakeholders. The CME Group needs to get in front of this trend by building solar/wind/hydro energy plants to power our global operations. Then divert the excess energy to mine Bitcoin and other cryptocurrencies.”

Dante Federighi is also the founder of the investment management firm Fortezza Forza RMC Fund LLC. Currently, he has been nominated as the Class-B2 director for the CME Group.

Upon its recent proposition, the CME Group director nominee said that the company will convert all the newly minted digital currencies into fiat. He says that this would help in creating an additional revenue stream for the shareholder. Besides, CME will also benefit from the deep knowledge of new technologies.

“We can provide superior liquidity to B-share owners; enable future owners to gradually buy into a membership over time, and create significant new revenue streams for our trading right owners,” he said.

CME Futures Volume Drops Earlier This Month

Ever since CME Group launched its Bitcoin futures trading back in December 2017, it has seen a major rise in interest from the institutional players. Until March this year, the average daily trading volume in CME was $376 million for the last four months. However, the data for March shows that trading volumes have dived 35% lower.

It looks like the fear and uncertainty in the global markets have kept institutional investors away from participating. While the Dow Jones corrected nearly 40% over the last month, the crypto markets have also been sinking. Bitcoin corrected nearly 40% just in a month’s time.

However, despite the uncertain month for the crypto market, the Bakkt platform is seeing a 44% jump in seeing the physical delivery of its Bitcoin futures contracts.

Bitcoin News, Blockchain News, Cryptocurrency News, News
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