With bitcoin rallying above $55,000 for the first time since May, cryptocurrency miners are holding onto their newly minted currencies to bolster their balance sheets.
Recent monthly production updates from crypto miners such as Riot Blockchain and Marathon Digital Holdings show that they have kept their mined bitcoins during September, when prices hovered around $40,000.
Riot Blockhain, the Castle Rock, Colo.-based miner, said in a statement Wednesday that as of Sept. 30, it holds 3,534 bitcoins, an increase of 406 bitcoins from August. Riot’s share price rose as much as 6.5% on Wednesday, before paring gains to close the trading session up about 1%.
Meanwhile, Riot’s competitor, Marathon Digital Holdings, said on Oct. 4 that it now holds 7,035 bitcoins on its balance sheet, after producing 340.6 new bitcoins in September. It previously said the company held 6,695 bitcoins in August. Marathon’s stock was up 4.8% on Wednesday.
Adding to the trend, on Oct. 4, Canadian Hut 8 Mining Corp. also reported that all of its self-mined bitcoins were deposited into custody, which is consistent with the company’s strategy to “hodl” its mined digital currency. “We are thrilled with our current amount of bitcoin held in reserve as well as being ahead of schedule on our commitment to the market to have over 5,000 self-mined bitcoin by end of Q4,” said Jaime Leverton, CEO of Hut 8, in a statement.
The strategy of holding onto the digital currency is that in a bull run, doing so is likely to help miners’ balance sheets and bolster investors’ bullish sentiment on the overall sector. The miners are already enjoying continued profitability, as the prices for bitcoin have recovered from their recent decline and climbed about 88% this year.
Riot’s share price has climbed about 57% this year, while Marathon has jumped 254% and Hut 8 has risen 232%.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback
Bitcoin hit a new all-time high of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead.
GIGA investor loses $6M to phishing scam via fake Zoom link
On Monday, a Gigachad (GIGA) investor lost $6.09 million due to a phishing attack involving a fake Zoom link. Crypto investigation firm Scam Sniffer declared the scam that led the victim to a malicious site, compromising their wallet.
Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show
Tron is breaking above an ascending triangle formation on Tuesday, signaling a potential rally continuation. While AVAX and UNI are retesting their crucial support level — if supported, this suggests an upside move — all three altcoins look poised for double-digit gains as the crypto rally continues.
BNB: Bullish technical pattern validated, eyes all-time high
Binance Coin trades slightly down on Tuesday after breaking above an ascending triangle formation on the weekly chart, following a 12.5% rally last week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $825.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.