Bitcoin Miners Increasing BTC Treasuries

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

There’s a new paradigm unfolding among the large public bitcoin miners: They don’t want to sell their bitcoin, and they also want to acquire more. As a result, they are finding creative ways to raise capital or leverage their bitcoin holdings to help cover operating costs rather than having to sell for fiat.

One strategy is to loan out a portion of their bitcoin holdings, thus earning fiat yield that can directly go towards paying their operating expenses. Hut 8 Mining has been doing this, loaning out 2,000 BTC (nearly 40% of their BTC holdings) to earn a 4% interest rate starting in January. That interest rate has since come down to 2.00% to 2.25% as of its latest Q3 financial reporting. At today’s price, 2,000 BTC is worth around $130 million in total value earning an annualized $2.6 million at the lower 2% interest rate. An average bitcoin price for the entire year of $46,792 would generate $1.8 million.


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