A new trend in the world of crypto mining. Bitcoin miners are adopting the same strategy as MicroStrategy, Michael Saylor’s software company known for its aggressive Bitcoin accumulation. According to a report from JPMorgan, miners are being forced to adopt this approach due to increasing pressure on their profit margins.
Pressure on miners through halving and increasing hashrate
The challenges for miners are partly caused by the Bitcoin halving that took place in April and the rising network hashrate, a measure of the total computing power deployed on the network. This has increased competition in the sector and made mining more difficult.
According to JPMorgan, this is driving miners to build up their bitcoin reserves or diversify into other sectors, such as artificial intelligence (AI) and high-performance computing (HPC). “Miners appear to be adjusting their strategy by hoarding Bitcoin or investing in diversification,” said analysts led by Nikolaos Panigirtzoglou.
MARA Holdings and other leaders
MARA Holdings, a prominent mining organization, now owns 35,000 bitcoins worth $3.5 billion. This makes the company the largest public holder of bitcoin after MicroStrategy. Other companies, such as medical device manufacturer Semler Scientific, are also entering the market with significant purchases. Semler currently owns $144 million worth of bitcoin.
Miners’ strategy includes not only bitcoin accumulation, but also alternative financing methods. Miners are increasingly raising capital through equity and debt issuances rather than selling their reserves to cover operating costs. JPMorgan reports that miners have already raised more than $10 billion in equity capital this year, which is a new record and surpasses the previous high of $9.5 billion in 2021.
Institutional interest is growing through Bitcoin ETFs
The introduction of spot bitcoin ETFs in January has given institutional investors a direct way to gain exposure to bitcoin. This may have contributed to a shift in perception of miner stocks, which were previously seen as a proxy for bitcoin. JPMorgan notes that these stocks have been underperforming since the ETFs became available, indicating that investors are now more likely to choose bitcoin directly.
With these developments, the mining sector continues to adapt to changing market conditions, with the focus increasingly shifting to strategic long-term building and diversification.
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Source: https://newsbit.nl/bitcoinminers-volgen-strategie-van-microstrategy-jpmorgan/
