Bitcoin miners reportedly on a hoarding spree amid crypto crash concerns. BTC miners are among the highest holders of BTC in the market. According to a report by Arcane Research, most public Bitcoin miners do not sell their mined Bitcoins.
What are Bitcoin (BTC) miners aiming for?
Crypto and digital asset analysis and research service provider explained the rationale behind miners’ accumulation strategies. According to the information obtained by Kriptokoin.com, this is mostly because public miners want their stocks to be closely correlated with the BTC price. In the long run, a greater correlation with comparative crypto will indirectly attract investors willing to invest in BTC. BTC mining companies aim to serve as BTC investment vehicles, helping to provide investors with Bitcoin exposure without holding the asset directly. Therefore, it was stated in the report that they plan to create Bitcoin treasures to be more correlated with the BTC price.
Marathon has established the largest BTC reserve among the top 10 publicly traded BTC mining companies. Marathon currently holds 8,956 BTC according to public records. Half of the amount is self-extracting and around 4813 BTC was added through purchases in January 2021. Marathon is followed by Core Scientific, Hut 8 and Riot holding 7,355 BTC, 6,115 BTC and 5783 BTC, respectively. Arcane also noted that six Bitcoin miners are among the top 10 publicly traded institutions holding Bitcoin on their balance sheets. The marathon is run only by MicroStrategy and Telsa, according to data from Bitcoin Treasuries.
Miners expand operations
Arcane has also identified that publicly traded mining companies are distributing funds to increase hash rates. Many, including Core Scientific and Marathon, took advantage of public markets and debt financing to raise funds for their expansion. Marathon plans to be the fastest growing by increasing the hash rate by 500% by the end of the year. Similarly, Core Scientific is targeting a 150% increase, with others ambitious targets. As these firms largely operate in the US and Canada, their growth efforts could have the effect of boosting North America’s already large contribution to the Bitcoin hash rate without realizing it.
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