U.S. Bitcoin mining companies are defying expectations before the next halving event by holding onto the Bitcoin they mine instead of selling it.
Marathon Digital Holdings didn’t sell any of its Bitcoin in June, a decision that reflects a growing trend among U.S.-based Bitcoin miners to hold rather than sell. Salman Khan, Marathon’s chief financial officer, explained the decision-making process behind this strategy.
“It’s a very systematic process that we go through from an internal standpoint,” Khan said. “Market dynamics are considered because Bitcoin prices can fluctuate in the short term, impacting our decisions.”
Khan noted the unique nature of Bitcoin compared to other assets. “If we were an oil company, we would sell all the oil we produce because it’s our primary source of revenue. But Bitcoin is different. It’s a digital asset that can stay on your balance sheet without any storage costs.”
Marathon currently holds 18,536 Bitcoin, worth over $1 billion, a 48% increase from last year’s total of 12,538. Khan highlighted Bitcoin’s impressive returns: “The rate of return on Bitcoin was 150% over the last few years, outperforming other asset classes available for corporate investment. We believe Bitcoin prices will continue to rise, so we don’t need to sell Bitcoin every month.”
Marathon isn’t the only U.S. Bitcoin miner accumulating BTC. Riot Platforms hasn’t sold any Bitcoin since January, and CleanSpark has only made small sales. These companies mine hundreds of Bitcoin each month, showing a clear trend towards accumulation among major U.S. mining firms.
CleanSpark CEO Zach Bradford emphasized the strategic importance of holding Bitcoin. “We are not ideologically committed to holding Bitcoin, but we see it as strategically important in the current environment. We expect Bitcoin prices to remain volatile, but over the long term, we believe they will increase in value. We monitor the market in real-time to drive our decisions.”
Summary Review: U.S. Bitcoin miners are increasingly choosing to hold onto their mined Bitcoin rather than sell it, anticipating future price increases. Marathon Digital Holdings, Riot Platforms, and CleanSpark are among the companies leading this trend. These firms view Bitcoin as a valuable digital asset that offers significant long-term returns, outperforming other asset classes. By strategically accumulating Bitcoin, they aim to capitalize on expected future price increases, reflecting a pragmatic approach to managing their assets in a volatile market.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
