Many bitcoin miners are starting to implement the strategy used by MicroStrategy, according to JPMorgan. Shares of MicroStrategy were one of the hottest trades of the year as cryptocurrencies soared and President-elect Donald Trump’s victory sparked another windfall as investors bet the new administration will take a more positive stance on the digital asset. MSTR shares mountain YTD this year The software company owned by Michael Saylor is widely known for its digital currency grab in recent years, with shares rising more than 500% during the big rally. Bitcoin surged above $100,000 on Thursday. And the trend of buying bitcoin continues with mining stocks, notes JPMorgan’s Nikolaos Panigirtzoglou. This is due in part to the rise of spot bitcoin ETFs, which have replaced the use of mining stocks as trading proxies. “The increasing hashrate of the network and the reduced mining rewards after the halving have put a lot of pressure on the profitability with the daily profit made by miners on a terahashrate basis ($/TH/s/s/day),” he explained. “This may prompt miners to hoard or seek further investment in bitcoin or switch to AI/[high-performance computing] businesses as discussed in our previous publications.” This includes companies like Mara Holdings, which uses a technique called BTC yield, he said. mined bitcoins or actively buying more bitcoins,” said Panigirtzoglou. Mara does this by balancing the buying and mining of cryptocurrency, he said. The company, which now holds 35,000 bitcoins, is also issuing convertible notes to benefit this purchase. Miners have also begun to finance their operations with debt and equity by selling bitcoin reserves, which should help increase their market position and financial strength. current performance To be sure, there are risks of holding more bitcoin given the volatility of the digital asset These companies have become proxies to play the volatility of cryptocurrency prices, which can fluctuate greatly. Along with MicroStrategy, other important miners with bitcoin holdings include Riot Platforms and Cleanspark. Riot Platforms is down more than 16% this year, while Cleanspark is up 17.5%, but continues to underperform the broader market.
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