Bitcoin miners are buying the coin enmasse, a trend that has ignited a projection from JPMorgan analysts on the future of the niche
Apart from Japanese financial firm Metaplanet, JPMorgan thinks miners may borrow a leaf from MicroStrategy’s Bitcoin (BTC) playbook. The Analysts led by Nikolaos Panigirtzoglou made this inference to establish that MicroStrategy is not the only large-scale corporate buyer of Bitcoin.
MARA Holdings Bag 35,000 Bitcoin
Crypto miners have also adopted a Bitcoin accumulation strategy driven by growing pressure on profitability. According to the JPMorgan report, this pressure stems from the reward halving which took place in April and a rising Bitcoin network hashrate.
Speaking of Artificial Intelligence (AI) and high-performance computing, these analysts noted, “This likely prompted miners to hoard or seek further investments into bitcoin or diversify into AI/HPC businesses.”
In response to these challenges, MARA Holdings launched its Bitcoin accumulation strategy and consistently acquired more coins.
It increased its Bitcoin holdings after successfully raising $1 billion through a convertible note offering in November. At the time, the BTC miner mentioned that it had $160 million left from their sales after transaction costs. The plan was to use this money to buy more Bitcoin when prices dropped.
So far, it has already secured over 35,000 tokens. At the current market value of $100,089.28, this stash is worth more than $3.5 billion. This size of Bitcoin holding makes the Bitcoin miner the second-largest publicly listed corporation.
Bitcoin Outperforms Shares of Miners
Semler Scientific, a popular medical device maker, has also been actively buying the BTC.
In its case, it has successfully amassed up to $144 million worth of crypto. The introduction of spot Bitcoin ETFs in the United States is instrumental to the growing number of institutional investors in the crypto sector. These investors are seeking strategies to gain exposure to Bitcoin and other cryptocurrencies.
Conversely, miners’ shares, which were treated as a proxy for a long time, have begun to underperform due to the pivot. JPMorgan also noted that miners increasingly finance their businesses using debt and equity offerings. Ordinarily, one would expect that they will sell their crypto reserves to cover operational costs, but this is not the case.
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