MicroStrategy (MSTR), known for its aggressive Bitcoin (BTC-USD) accumulation under the leadership of Michael Saylor, isn’t alone in its strategy. According to a report by CoinDesk, JPMorgan (JPM) highlighted in a Wednesday analysis that crypto miners are also embracing a similar approach to amassing Bitcoin. This shift is largely motivated by the challenges posed by the Bitcoin reward halving in April and an escalating network hashrate, which together squeeze profitability margins for miners.
The report explains that hashrate, which measures the total computational power dedicated to mining and processing transactions on the Bitcoin blockchain, reflects the increasing competition and difficulty in mining. This scenario has pushed miners towards strategies like hoarding Bitcoin or diversifying into areas like artificial intelligence (AI) and high-performance computing (HPC) to maintain or enhance profitability.
JPMorgan’s analysts, led by Nikolaos Panigirtzoglou, point out that miners have adopted a “BTC yield” strategy akin to MicroStrategy’s, where they accumulate Bitcoin rather than liquidating their holdings. For instance, MARA Holdings (MARA) has significantly expanded its Bitcoin stash to 35,000 tokens, now valued at $3.5 billion, positioning it as the second-largest publicly listed corporate holder of Bitcoin after MicroStrategy.
This trend extends beyond just miners. Companies like Semler Scientific, a medical-device maker, have also been actively purchasing Bitcoin, with their current holdings amounting to $144 million. The introduction of spot Bitcoin ETFs in January has shifted some investor interest away from miner stocks, which were previously used as a proxy for Bitcoin investment, leading to a relative underperformance in miner shares.
To fund their operations without selling their Bitcoin reserves, miners are increasingly turning to capital markets, with more than $10 billion raised through equity offerings this year alone, surpassing the record set in 2021. This move towards financing through debt and equity rather than selling assets reflects a strategic pivot towards long-term investment in Bitcoin, potentially setting a new standard for how companies manage their crypto assets in an increasingly volatile market environment.
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