The two largest Bitcoin mining companies in the world, MARA and Hut 8, have recently made large-scale Bitcoin purchases, boosting their asset reserves despite market volatility in the crypto space.
MARA Spends Over $1.5 Billion to Buy Bitcoin
• MARA has announced the purchase of an additional 3,800 BTC for approximately $400 million, bringing the total number of $BTC the company holds to 44,394 BTC, worth over $4.4 billion.
• This purchase is an extension of a previously announced transaction last week, when the company bought 11,774 BTC for $1.1 billion.
Hut 8 Adds Nearly 1,000 BTC
• Hut 8 has purchased an additional 990 BTC for $100 million, bringing the company's total Bitcoin reserves to 10,096 BTC, equivalent to over $1 billion.
• Although Hut 8's average purchase price is $101,710/BTC, higher than the current market price ($97,951/BTC), CEO Asher Genoot asserts that holding Bitcoin will strengthen financial capabilities and support the company's large expansion plans.
Competing for the Lead Position in Bitcoin Reserves
According to data from Bitcoin Treasuries, MARA and Hut 8 are among the top 6 public companies holding the most Bitcoin. MARA has nearly tripled its Bitcoin holdings over the past year by raising nearly $2 billion through convertible bond offerings.
Volatile Market Causes Stock Price Drop
Despite expanding Bitcoin reserves, the stocks of MARA and Hut 8 fell by 5% and 7% respectively on the day due to the impact of a general market downturn in crypto.
Bitcoin Mining Activity: A Heavy Industry
Bitcoin mining requires enormous energy and hardware resources. Major companies like MARA and Hut 8 operate warehouses with thousands of high-tech computers, rather than individual miners.
Conclusion
Despite the highly volatile crypto market, large Bitcoin mining companies are still ramping up their BTC accumulation, reaffirming their long-term confidence in the potential of this currency. These moves could bolster their financial position amid an increasingly competitive cryptocurrency industry.