Bitcoin (BTC) miners are holding more and more bitcoins as they “relentlessly expand” their business in 2022.
A report from Arcane Research notes that listed bitcoin miners are “constantly looking for expansion opportunities” as they “plan to increase hash rates faster than the entire network by 2022.”
Public bitcoin miners expect hashing. Source: Secret Research.
According to the latest data from the Cambridge Bitcoin Energy Consumption Index, 44.95% of the world’s hashrate comes from North American miners. With an expected massive increase in target hash rates among the listed bitcoin miners, “it is likely to increase.”
Arcane Research analyst Garan Millrod told Cointelegraph that “most of the listed miners follow the hodl strategy and do their best to save as much bitcoin as possible.”
“This hodl strategy allows them to act as a Bitcoin investment vehicle for investors who want to indirectly own Bitcoin through an investment structure.”
White Gibbs, founder and CEO of Compass Mining, explained to Cointelegraph that “government miners definitely have an edge when it comes to using bitcoin because they have access to the capital markets.”
“They don’t have to liquidate bitcoin to buy more cars, more shelf space, etc. They can go into the capital markets and keep increasing money. This way they can get large bitcoin positions.
Gibbs adds that some of the biggest miners own huge amounts of bitcoin: “It’s crazy how many some of them have.” According to the BitcoinTreasures website, bitcoin mining company Marathon owns the third largest amount of bitcoin among companies in the world, just behind Tesla and MicroStrategy.
Bitcoin holdings of registered bitcoin miners. Source: Secret Research.
Since January 2021, miner reserves have been steadily increasing, reflecting their HODL strategy. Gibbs suggests that the listed bitcoin miners are “taking a more optimistic approach to bitcoin.”
“Companies are looking at Bitcoin on a balance sheet as a way to increase market capitalization.”
The pool of blue miners is constantly increasing. Source: CryptoQuant
Mellerud also knows that bitcoin mining stocks are becoming more popular in traditional financial markets. “Demand for Bitcoin investment vehicles is high, especially in the US, because the Bitcoin ETF market is still immature.” The bitcoin exchange trading fund (ETF) story is the network’s Achilles’ heel as subsequent requests for bitcoin ETFs were denied.
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As market interest in bitcoin miners grows, Mellerud summarizes why the mining business model is so attractive and efficient, mirroring Gibbs’ comments:
“Miners are some of the biggest speculators in bitcoin and they use the highly developed stock and debt markets in the US to raise money to pay for expansion and operating costs so they can store the bitcoins they mine.”