2024 saw unprecedented success in the Bitcoin mining sector, however, fierce competition and market fluctuations led many firms to implement innovative tactics instead.
Based on a report dated January 7th from NiceHash and Digital Mining Solutions, it appears that other publicly-traded mining companies have been emulating MicroStrategy’s move by augmenting their reserves of Bitcoin (BTC).
2024 saw a significant change among Bitcoin miners as they increasingly chose to hold onto more of the Bitcoin they mined or decided not to sell it at all, according to researchers Nico Smid and Cindy Geng.
1) Miners might choose not to cash out their Bitcoin due to several factors: they could expect the price of Bitcoin to rise in the future or wish to bolster their financial resources. Additionally, if they’re adhering to MicroStrategy’s strategy, their Bitcoin reserves may serve as a protective measure against currency depreciation.
According to the report, companies such as MARA Holdings, Riot Platforms, and Hut 8 have increased their holdings of Bitcoin by taking out loans. This action strengthens their overall Bitcoin acquisition plans.
Beyond just obtaining BTC, miners like CleanSpark have chosen to keep most of the Bitcoin mined over the past few months instead.
Four of the 16 largest Bitcoin holders are mining companies, the report said.
Shifting business strategy
2024 saw some miners expand beyond their primary mining activities, venturing into high-performance computing and artificial intelligence industries as well. This move created consistent income sources to help them weather the ups and downs of the mining sector’s volatility. The report made this observation.
In the U.S., this trend was particularly noticeable due to a combination of challenging mineral extraction economics and attractive AI/HPC (Artificial Intelligence and High Performance Computing) business opportunities, which motivated them to expand their involvement in computational fields.
Bitcoin miner Hive Digital disclosed to CryptoMoon back in September that they switched their Nvidia GPUs from mining Bitcoin to using them for artificial intelligence projects instead.
As stated by Aydin Kilic, the head of Hive, employing Nvidia GPUs for artificial intelligence duties yields approximately $2 per hour in income, whereas crypto mining only brings in around 12 cents per hour.
In just the second quarter, the company’s High-Performance Computing (HPC) and Artificial Intelligence (AI) system brought in over $2 million as earnings.
Based on findings from reports by NiceHash and Digital Mining Solutions, it appears that numerous Bitcoin miners, each having a market value of over $100 million, have earned substantial income through their endeavors in Artificial Intelligence (AI) and High-Performance Computing (HPC) projects.
Approximately 8% of Hut 8’s earnings during the initial nine months of 2024 came from HPC/AI, while this percentage was almost 7% for Hive Digital.
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2025-01-07 21:48