🔥 Mining Companies Pivot to MicroStrategy’s Approach
posted 13 Dec 2024
As mining becomes less lucrative, companies are adopting MicroStrategy-like strategies, notes JPMorgan. Factors include a surging network hashrate and reward reductions following halving events.
MicroStrategy, headquartered in the U.S., is known for its expertise in business intelligence, software, and cloud services. The company has also become synonymous with Bitcoin, holding one of the largest BTC portfolios globally.
CEO Michael Saylor, a fervent Bitcoin supporter, often voices his optimism about the cryptocurrency’s future on X. He firmly believes Bitcoin is the financial technology of tomorrow.
In the mining sector, however, competition is intensifying. Bitcoin’s network difficulty climbed above 100T for the first time in autumn 2024.
Bitcoin Mining Difficulty Chart Source: CoinWarz
In response to rising challenges, miners are diversifying by stepping into the AI sector and leveraging innovative financial strategies. These include buying Bitcoin and financing operations through bond issuances instead of selling off crypto assets.
MARA Holdings seems to be embracing this model, with a recent $700 million note issuance and additional Bitcoin acquisitions.
The company’s reserves now exceed 40,000 BTC as of December 9, according to a statement shared on X.
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