Business

Miners Who Earn the Most Bitcoins Are ‘Expanding Nonstop’

Bitcoin (BTC) miners are holding more and more Bitcoin while “constantly expanding” their operations in 2022.

A report by Arcane Research indicates that publicly listed Bitcoin miners are “constantly looking for scaling opportunities,” as they “plan to increase hashrate faster than the entire network by 2022.”

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Publicly listed Bitcoin miners according to the expected hashrate. Source: Arcane Research

44.95% of the global hash rate comes from North American miners, according to the latest figures from Cambridge’s Bitcoin electricity consumption Table of contents. With a large increase expected in the target hash rate among publicly traded Bitcoin miners, it is “likely to increase”.

Jaran Mellerud, an analyst at Arcane Research, told Cointelegraph that “most publicly listed miners follow a hodl strategy, doing their best to keep as much of their mined Bitcoin as possible. “.

“This hodl strategy allows them to become a Bitcoin investment vehicle for investors who want to own bitcoin indirectly through an investment structure.”

Whit Gibbs, founder and CEO of Compass Mining explained to Cointelegraph that “public miners definitely have an advantage when it comes to selling Bitcoin because they have access to capital markets.”

“They don’t need to liquidate their Bitcoins to buy more machines, increase rack space, etc. They can go to the capital markets and take that money to keep expanding. So they can hold large positions in Bitcoin. ”

Some of the biggest miners hold large amounts of Bitcoin, Gibbs added, adding “it’s crazy that some of them are holding.” As published on BitcoinBitcoin mining company Marathon holds the third largest amount of Bitcoin among businesses worldwide, right behind Tesla and Microstrategy.

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Bitcoin holdings of publicly listed Bitcoin miners. Source: Arcane Research

As of January 2021, miners’ Reserve has been steadily increasing, reflecting their HODL strategy. Gibbs suggests that publicly traded Bitcoin miners are “adopting a more bullish approach to Bitcoin.”

“Companies are looking at Bitcoin on their balance sheets as a way to increase their market valuation.”

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The reserves of blue miners are steadily increasing. Source: CryptoQuant

Mellerud also understands that Bitcoin mining stocks are increasingly popular in the legacy financial markets. “Demand for bitcoin investment vehicles is high, especially in the US, as the Bitcoin ETF market is immature.” The Bitcoin exchange-traded fund (ETF) story is an Achilles heel for the network: Consecutive Bitcoin ETF applications were rejected.

Related: Bitcoin mining difficulty drops for the first time this year

While the market’s interest in Bitcoin miners grows, Mellerud summarizes why the mining business model is attractive and effective, echoing Gibbs’ comments:

Miners are one of the largest Bitcoin speculators out there, and they use the highly developed debt and equity markets in the US to raise money to pay for expansions and operating costs, allowing they keep the Bitcoins they mine.”

Take Bitcoin Miner Hut 8, for example, which recently announced record sales, with total BTC holdings increased by 100%. 2022 may not be the year of the bull, but surely this is the right time to mine the orange coin publicly.