According to a series of reports, miners not only hold BTC, but they also significantly increase their hash rate. Publicly listed Bitcoin miners are “constantly looking for expansion opportunities,” as they are planning to increase hash rate faster by 2022.
North American miners account for 44.95% of the global hash rate, according to the latest figures from Cambridge’s Bitcoin. It is likely to go even higher than expected in terms of Bitcoin’s target rate. Jaran Mellerud, an analyst at Arcane Research, told Cointelegraph that “publicly listed miners are all pursuing a HODL strategy, trying their best to retain as much of the Bitcoin that has been mined.”
Whit Gibbs, founder and CEO of Compass Mining explains “direct miners have the advantage of having direct exposure to capital markets”. As Gibbs adds, some miners hold huge amounts of Bitcoin. Bitcoin mining company Marathon, for example, holds the 3rd largest amount of Bitcoin out of all businesses worldwide, behind only Tesla and MicroStrategy.
From January 2021, miner’s reserve increases gradually thanks to their HODL strategy. And publicly traded Bitcoin miners are adopting more bullish approaches to Bitcoin.
Mellerud also understands that, with the financial market being gradually expanded like today, the need to buy Bitcoin mining shares is increasingly popular. Demand for Bitcoin investment vehicles is high, with the limitation being in the US as the exchange market is not yet large.
While the market’s interest in Bitcoin miners grows, Mellerud summarizes why the mining business model is attractive and efficient, like Gibbs commented: “Miners are some of the biggest Bitcoin speculators, and they use the highly developed debt and equity markets in the United States to fund their expansion and operating expenses, allowing them to keep the Bitcoins they hold. exploit”.
Take Bitcoin Miner Hut 8, for example, with a 100% increase in total BTC holdings. In 2022, it is definitely the right time to publicly mine this “orange coin”.
WHY DO MINERS HOLD COINS?
Miners’ failure to sell their coins may be down to market sentiment and Bitcoin’s volatility. The position of miners increases or decreases according to the strong and disproportionate volatility of Bitcoin. The most recent sale, recorded in January 2021, saw Bitcoin spike in a new bull run. After the sale took place, BTC dropped 25% and recovered back to its previous price in February.
In a recent Wu Blockchain tweet, data from Glassnode indicates that transactions greater than $10 million on the Bitcoin chain have surged, peaking and hitting a record when exceeding 70%.
This increase came when the market stabilized after the cryptocurrency ban was issued from the Chinese side. Right now, the mining companies have stabilized again and that is also the reason for the rapid increase in recent times.
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