Miners Are Adopting the Same Bitcoin Acquisition Strategy as MicroStrategy: JPMorgan

2024-12-14 13:31

MicroStrategy (MSTR), the software company founded by Michael Saylor, is not the only large-scale corporate buyer of bitcoin (BTC), JPMorgan (JPM) said in a Wednesday report. Crypto miners are also adopting the accumulation strategy.

The shift to building up bitcoin holdings is driven by growing pressure on profitability, which stems from the reward halving in April and a rising network hashrate, the report said. Hashrate is the total computational power used to mine and process transactions on a proof-of-work blockchain and is a proxy for competition in the industry and mining difficulty.

"This likely prompted miners to hoard or seek further investments into bitcoin or diversify into AI/HPC businesses," analysts led by Nikolaos Panigirtzoglou wrote, referring to artificial intelligence and high-performance computing.

Miners such as MARA Holdings (MARA) have adopted a similar bitcoin-buying strategy to MicroStrategy, called BTC yield, in response to these challenges, JPMorgan said.

MARA now owns 35,000 tokens ($3.5 billion) and is the second-largest publicly listed corporation in terms of bitcoin holdings.

The miners aren't alone. Medical-device maker Semler Scientific has also been actively buying the world's largest cryptocurrency, and now owns $144 million worth of crypto.

January's introduction of spot bitcoin exchange-traded funds (ETFs) in the U.S. has given institutional investors a more direct way to gain bitcoin exposure, the bank said. Shares of miners, which had been treated as a proxy for bitcoin, have underperformed as a result.

The bank noted that aside from buying more bitcoin, miners are increasingly financing their businesses via debt and equity offerings rather than selling their crypto reserves to cover operational costs.

Miners have raised more than $10 billion in equity so far this year, eclipsing the previous high of $9.5 billion in 2021, the report added.

Read more: Bitcoin Miners Cipher, CleanSpark and MARA Upgraded at JPMorgan

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 103744.19 (+0.19%)
Объем 24H $77.947b
Изменеия 24h: -2.63 %, 7d: 6.15 %
Cегодня L: $103233.07 - H: $106640.42
Капитализация $2053.897b Rank 1
Цена в час новости $ 101296.61 (2.42%)

bitcoin pressure due profitability reward said report

bitcoin pressure → Результатов: 126


Фото:

Mark Cuban: Inflationary Pressure Could See Bitcoin Become Global Reserve

Inflationary pressure and geopolitical uncertainty could see Bitcoin become a global reserve currency, states Cuban The billionaire believes Trump’s lower tax rates and tariffs could push up Bitcoin’s price Elon Musk plans to commit $45m a month to back Trump’s presidential run US billionaire Mark Cuban believes that through a combination of inflationary pressure and […] The post Mark Cuban: Inflationary Pressure Could See Bitcoin Become Global Reserve appeared first on CoinJournal.

2024-7-19 12:36


Фото:

Bitcoin Plunges Below $11,000 as Selling Pressure from Miners Ramps Up

After facing some slight turbulence yesterday, Bitcoin incurred a massive rush of selling pressure today that sent its price reeling down to lows of $10,700 This movement came about in the form of a sharp selloff following a prolonged bout of sideways trading within the lower $11,400 Analysts are now noting that the market is now at serious risk of seeing further downside This comes as multiple large BTC mining pools begin offloading their holdings […]

2020-9-4 21:00


Фото:

Bitcoin at Risk of Seeing Major Downside as Buying Pressure Evaporates

Bitcoin has seen some intense selling pressure today following a bearish resolution to its long-held bout of sideways trading The cryptocurrency is now at risk of seeing further selling pressure as it struggles to defend a key support level Analysts are noting that it may decline as low as $8,500 in the hours and days ahead as it struggles to maintain its multi-week uptrend Bitcoin is now trading right above its key support level at […]

2020-5-24 19:00


Фото:

This analyst believes exchanges will spearhead the next bearish Bitcoin tide, but CZ strongly vouches for Binance

The majority of Bitcoin proponents have remained bullish as they go all-in on the oldest and most valued cryptocurrency the world has ever known. With whales betting big on Bitcoin, buying pressure has increased immensely, so much that Bitcoin saw over a 35% increase in the value to its current price within the last two […]

2020-5-10 20:47


Bitcoin Cash SV (BCHSV) Daily Price Forecast – November 29

  BCHSV/USD Medium-term Trend: Ranging Supply zones: $150, $200, $250 Demand zones: $30, $20, $10 BCHSV is in a range-bound market in its medium-term outlook. $74.26 in the demand area was the low the bearish pressure could drop the cryptocurrency before rejection by the 50-EMA which acted as strong support for the bulls come back. […]

2018-11-29 12:48