CME Group to enter the world of mining

Nominee from CME Group’s upcoming election of board of directors, Dante Federighi, proposed recently that the company start mining bitcoin and other cryptocurrency to boost revenue for shareholders.

Co-founder of Fortezza Forza RMC Fund LLC and background in investing in the energy industry, Federighi was named a nominee for CME Group’s Class B-2 director.

CME Group

Federighi laid out his vision for CME Group in a letter to the to shareholders filed with the Securities and Exchange Commission. Even as a derivatives trading marketplace, Federighi believes CME Group can explore investment in building energy plants and utilizing the excess energy to mine bitcoin and other cryptocurrencies.

Dante Federighi stated in the letter:

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 crypto currencies.

Federighi argued that CME Group could create another source of revenue for investors converting the minted crypto quickly into fiat drawing on the company’s ability to “match and clear trades.”

Dante Federighi said:

While this seems outside of our core competencies, I’d argue this is our business: we, like the miners, match and clear trades. We’d immediately converted any newly minted crypto into fiat. The net-net is another new revenue stream for shareholders; deep knowledge in new technologies changing the global exchange landscape for the CME; and increased allocation to ESG-focused businesses by investors. That’s a win-win-win.

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