Crypto Miners Are Adopting MicroStrategy's Bitcoin (BTC) Buying Strategy: JPMorgan
According to a report by JPMorgan, crypto miners are increasingly adopting a bitcoin accumulation strategy similar to that of MicroStrategy due to pressure on profitability following the reward halving. This shift involves miners financing their operations through debt and equity offerings instead of liquidating their bitcoin reserves. The introduction of spot bitcoin ETFs in the U.S. has provided institutional investors with a more straightforward way to gain exposure to bitcoin, leading to a decline in mining stocks, which were previously considered proxies for bitcoin. Companies such as Marathon Digital Holdings have embraced this strategy as they face heightened competition and mining difficulties. For instance, Marathon now holds 35,000 bitcoins, valued at approximately $3.5 billion, becoming a leader in corporate bitcoin holdings. Furthermore, medical-device maker Semler Scientific has also invested significantly in bitcoin, further illustrating the trend among large-scale corporate buyers. Overall, miners have raised over $10 billion in equity this year, surpassing previous records and indicating a proactive approach to financial challenges.
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