JPMorgan Chase said that more and more Bitcoin miners are beginning to adopt the strategy exploited by MicroStrategy. MicroStrategy stock is one of the hottest trades of the year as cryptocurrencies rise to new highs and President-elect Donald Trump’s victory sets off another wave of activity as investors bet the new administration will take a more favorable stance on digital assets . MSTR YTD shares up this year The software company run by Michael Saylor has become widely known for snapping up digital currencies in recent years, with its shares rising more than 500% in a frenzied rally. On Thursday, Bitcoin hovered above $100,000. JPMorgan’s Nikolaos Panigirtzoglou noted that the trend to buy Bitcoin is catching on among mining stocks. This is partly due to the rise of spot Bitcoin ETFs, which have replaced mining stocks as a proxy for trading. “The rise in network hashrate and the reduction in mining rewards after the halving has put significant pressure on the profitability of miners’ daily revenue (in terms of terahashpower),” he explained. “This may prompt miners to hoard or seek Invest further in Bitcoin or diversify into the artificial intelligence/(high-performance computing) business, as discussed in our previous publications.” He said this includes companies such as Mara Holdings, which is using a technology called BTC. yield method. Panigirtzoglou explained: “The strategy focuses on increasing per-share Bitcoin holdings over time by issuing equity or debt to hoard mined Bitcoin or actively purchase additional Bitcoin.” He said, Ra does this by balancing the buying and mining of cryptocurrencies. The company currently holds 35,000 Bitcoins and also issued convertible notes to capitalize on these purchases. Miners are also beginning to raise money through debt and equity rather than selling Bitcoin reserves, which will help enhance their market position and financial strength. BTC.CM=YTD Bitcoin’s Year-To-Date Performance To be sure, holding more Bitcoin is risky given the volatility of the digital asset. These companies have also become agents of volatility in cryptocurrency prices, which can be very volatile. In addition to MicroStrategy, some other significant miners holding Bitcoin include Riot Platforms and Cleanspark. Riot Platforms is down more than 16% this year, while Cleanspark is up 17.5% but still underperforms the market.
More Stocks Using MicroStrategy’s Bitcoin Yield Strategy | Real Time Headlines
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