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

6 months ago

MicroStrategy (MSTR), the bundle institution founded by Michael Saylor, is not the lone large-scale firm purchaser of bitcoin (BTC), JPMorgan (JPM) said successful a Wednesday report. Crypto miners are besides adopting the accumulation strategy.

The displacement to gathering up bitcoin holdings is driven by increasing unit connected profitability, which stems from the reward halving successful April and a rising web hashrate, the study said. Hashrate is the full computational powerfulness utilized to excavation and process transactions connected a proof-of-work blockchain and is simply a proxy for contention successful the manufacture and mining difficulty.

"This apt prompted miners to hoard oregon question further investments into bitcoin oregon diversify into AI/HPC businesses," analysts led by Nikolaos Panigirtzoglou wrote, referring to artificial quality and high-performance computing.

Miners specified arsenic MARA Holdings (MARA) person adopted a akin bitcoin-buying strategy to MicroStrategy, called BTC yield, successful effect to these challenges, JPMorgan said.

MARA present owns 35,000 tokens ($3.5 billion) and is the second-largest publically listed corp successful presumption of bitcoin holdings.

The miners aren't alone. Medical-device shaper Semler Scientific has besides been actively buying the world's largest cryptocurrency, and present owns $144 cardinal worthy of crypto.

January's introduction of spot bitcoin exchange-traded funds (ETFs) successful the U.S. has fixed organization investors a much nonstop mode to summation bitcoin exposure, the slope said. Shares of miners, which had been treated arsenic a proxy for bitcoin, person underperformed arsenic a result.

The slope noted that speech from buying much bitcoin, miners are progressively financing their businesses via indebtedness and equity offerings alternatively than selling their crypto reserves to screen operational costs.

Miners person raised much than $10 cardinal successful equity truthful acold this year, eclipsing the erstwhile precocious of $9.5 cardinal successful 2021, the study added.

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