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Public Bitcoin Miners Are Increasing Their BTC Treasuries – Bitcoin Magazine

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Publicly-traded bitcoin mining firms have been accumulating and holding bitcoin at an increasing rate.
The below is from a recent edition of the Deep Dive, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.
There’s a new paradigm unfolding among the large public bitcoin miners: They don’t want to sell their bitcoin, and they also want to acquire more. As a result, they are finding creative ways to raise capital or leverage their bitcoin holdings to help cover operating costs rather than having to sell for fiat.
One strategy is to loan out a portion of their bitcoin holdings, thus earning fiat yield that can directly go towards paying their operating expenses. Hut 8 Mining has been doing this, loaning out 2,000 BTC (nearly 40% of their BTC holdings) to earn a 4% interest rate starting in January. That interest rate has since come down to 2.00% to 2.25% as of its latest Q3 financial reporting. At today’s price, 2,000 BTC is worth around $130 million in total value earning an annualized $2.6 million at the lower 2% interest rate. An average bitcoin price for the entire year of $46,792 would generate $1.8 million.
Generating revenue from loaned bitcoin to cover costs allows public miners to better execute on their increased HODL strategies. The Hut 8 bitcoin treasury is now 5,503 BTC which is already up 68% since March of this year. It’s the second-largest public miner treasury behind Marathon. Marathon and Riot, major public miners that report November production updates, both increased their bitcoin treasuries over the last month. 
Source: Hut 8 Mining Company Overview
Hut 8 deploys 1,000 BTC with Genesis Global Capital and 1,000 BTC with Galaxy Digital. That bitcoin is then used mostly for institutional trading arbitrage opportunities. Interest rates for bitcoin yield have been pushed further down this year as the cash and carry basis trade narrowed and GBTC shares started to trade at a discount instead of a premium.
A decrease in higher-yield opportunities drives lower market demand for bitcoin loans which then drives lower interest rates. Too much bitcoin supply is chasing yields while there is less demand for bitcoin borrowing. However, the futures ETF interest may help raise and sustain BTC market interest rates with a widening cash and carry spread. Right now that contango trade, longing spot and selling futures, is sustaining around 14% yield which is up from single digits in Q3.
Genesis Global Capital noted in its latest reporting that although bitcoin loans have increased, the weighting of their loan book in Q3 favored more ether and USDC loans as investors are pushed further along the risk curve in the search for a higher yield. This is a key market to watch into Q4 as increased interest rates for bitcoin lending will supply miners with yet another financial vehicle to continue their strategies to acquire more bitcoin.

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Explained: India's first crypto index and what it means for investors in India – Times of India

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Intel, Block Supporting Mining a Positive for Bitcoin’s Price: Analyst – CoinDesk

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(Shutterstock)
Large tech companies such as Intel and Block (previously Square) delving into making mining more efficient and accessible is likely to help the price of bitcoin by encouraging mass adoption, said an analyst for U.K-based digital asset broker GlobalBlock.
Intel, one of the world’s largest chip makers, said on Jan. 18 it will unveil an “ultra low-voltage bitcoin mining ASIC” which will be a more efficient specialized mining computer, competing with current miners that are in the market. “The fact that a $200+ billion tech firm is providing solutions for Bitcoin mining is more confirmation of big players entering the crypto space,” said GlobalBlock’s analyst Marcus Sotiriou.
The chipmaker said its new miner will reduce power consumption by about 15%, Sotiriou said, adding that such an increase in efficiency will help more institutional investors to enter the sector as ESG (environmental, social and governance) is one of their key investment priorities. If such a scenario plays out, it will likely help support bitcoin’s price.
Read more: How Bitcoin Mining Works
Crypto miner Griid Infrastructure, which is going public via a merger with special purpose acquisition company Adit EdTech Acquisition Corp., has already signed a supply agreement with Intel to potentially buy the chip maker’s new ASIC miners, according to a filing.
Meanwhile, payments giant Block said on Jan. 13 that it’s going ahead with its plan to build an open-source bitcoin mining system to make “mining more distributed and efficient.” If this feature is integrated with Cash App, it might increase the use of bitcoin to pay for goods and services by its users, furthering bitcoin adoption by the masses, Sotiriou noted.
“If successful, this will dramatically increase bitcoin’s use case as a means of exchange, rather than just a store of value – this would result in significantly more adoption and hence help bitcoin reach price figures of over $100,000,” he said.
Bitcoin is now trading near $42,000 since reaching its all-time high of just under $69,000 in November. The stocks of some miners, which are highly leveraged to the price of the crypto currency they mine, have tumbled more than 50% since their peak.
DISCLOSURE
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Aoyon Ashraf
Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets
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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
@2021 CoinDesk

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Dogecoin value 2022: Why did Elon Musk make the cryptocurrency's value rise? – Marca English

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Dogecoin’s value increased by 5,859% over the past 12 months
Dogecoin rose to $0.20 – a 15% increase in value – after billionaire Elon Musk announced Tesla would accept the cryptocurrency for purchasing merchandise.
The cryptocoin with the shiba inu dog meme originally started as a joke, but Musk’s various tweets about it have helped Dogecoin increase by 5,859% over the past 12 months, according to Coinbase. Tesla’s website started accepting Dogecoin soon after, with items such as an electric quad bike for kids priced at 12,020 doge ($2,368), the “Giga Texas Belt Buckle” for 835 doge ($156), and a whistle for 300 doge ($57).
This is just one of many tweets by Musk regarding Dogecoin, the first one coming December 20, 2020 when he tweeted, “One Word: Doge.” Shortly after his tweet, the value of Dogecoin rose by 20%.
Musk followed that post with a barrage of Dogecoin-related tweets in February 2021, including, “Dogecoin is the people’s crypto,” and “no highs, no lows, only Doge”. After these tweets, Dogecoin’s value soared by roughly 40%.
After a full year of showing support for Dogecoin, on December 14 Musk said Tesla would accept the cryptocoin to pay for merch. Dogecoin spiked more than 20% after his tweet.
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