Leading U.S. Bitcoin miners are strategically hoarding Bitcoin (BTC) to guard against escalating expenses and fierce competition. Companies like MARA Holdings Inc. (MARA), Riot Platforms Inc. (RIOT), and CleanSpark Inc. (CLSK) have capitalized on Bitcoin’s recent surge, which recently hit a staggering $100,000, enabling them to raise over $3.7 billion since November, as reported by Financial Times.
These funds have primarily been used for Bitcoin purchases, often financed through zero or near-zero coupon convertible notes. Emulating the roadmap established by MicroStrategy, MARA, the preeminent Bitcoin mining enterprise globally, has embraced a buy-and-hold tactic, opting to keep all the Bitcoin it mines while making occasional market purchases.
CleanSpark and other miners are similarly retaining most of their mined Bitcoin. On-chain data reveals a pronounced shift in behavior; CryptoQuant, a blockchain analytics firm, observed a dramatic decrease in the transfer of Bitcoins from miner wallets to exchanges in the last quarter, aligning with the cryptocurrency’s upward trend.
As of now, MARA ranks as the second-largest corporate Bitcoin holder, with an impressive stash of 44,893 BTC, valued at around $4.3 billion. Riot follows closely, holding 17,722 BTC worth $1.69 billion, as reported by bitcointreasuries.net.
This new approach signifies a pivotal shift in the industry’s mindset, especially after the recent halving of Bitcoin mining rewards, which has left many miners reassessing their strategies. Former President Donald Trump’s statement that Bitcoin would be “mined, minted, and made in the U.S.” has sparked renewed interest, with MARA CEO Fred Thiel attributing the recent momentum to this supportive sentiment.
The urgency to accumulate more Bitcoin serves as a defensive measure against rising operational costs, particularly due to increased electricity rates. Mining expenses continue to rise, with CoinShares estimating that the average cost of producing one Bitcoin in the third quarter of 2024 will reach $55,950, marking a 13% increase from the previous quarter. As of now, Bitcoin trades at $95,995.51.
Additionally, the hash rate, which represents the computational power necessary for mining, recently hit an all-time high, posing further challenges to cost management.
In stock market reactions, shares of MARA saw a decline of 7.20%, closing at $19.07, while RIOT fell 3.72% to $12.41, and CleanSpark dropped 6.30% to $10.71, based on data from Benzinga Pro.
As U.S. miners adapt to the evolving landscape, their strategies reflect a proactive stance in uncertain economic conditions, ready to face whatever challenges may come their way.
