Crypto Miners Are Embracing MicroStrategy’s Bitcoin (BTC) Buying Strategy: JPMorgan

MicroStrategy (MSTR), the software company founded by Michael Saylor, is not the only major legal buyer of bitcoins (BTC), JPMorgan (JPM) said in a report on Wednesday. Crypto miners are also adopting a pooling strategy.

The shift to building bitcoin holdings comes from an increasing pressure on profitability cut the prize in half in April and A growing network hashrateit is reported. Hashrate The total computing power used to mine and process transactions on a evidence of the case Blockchain is a proxy for competition in industry and mining difficulty.

Analysts led by Nicholas Panigirtzoglou wrote, citing artificial intelligence and high-performance computing: “This has prompted miners to further invest in or seek bitcoin or diversify into AI/HPC businesses.”

In response to these challenges, miners such as MARA Holdings (MARA) have adopted a strategy of buying bitcoins similar to MicroStrategy, BTC profitability, JPMorgan said.

MARA now has 35,000 tokens ($3.5 billion) and it the second largest publicly listed corporation on bitcoins.

Miners are not alone. There was also Semler Scientific, a medical device maker active purchase the world’s largest cryptocurrency, now has $144 million worth of crypto money.

January wrap up The emergence of bitcoin exchange-traded funds (ETFs) in the US has given institutional investors a direct way to gain exposure to bitcoin, the bank said. As a result, miner stocks, which are considered a proxy for bitcoin, have underperformed.

In addition to buying more bitcoins, the bank noted that miners are increasingly funding their businesses through debt and equity offerings, rather than selling crypto reserves to cover operating costs.

The report added that miners have raised more than $10 billion in equity capital so far this year, surpassing the previous peak of $9.5 billion in 2021.

Read more: Bitcoin Miners Cipher, CleanSpark and MARA Updated at JPMorgan