Miner Hut 8 holding all the bitcoin they mine...

in #bitcoin5 months ago

Miners are hodling for higher prices

Miners seem to think higher prices are on the way.

Miner Hut 8 for example is now sitting on 5,242 bitcoin worth almost $300 million and they have no intention of selling any of them.

They are hodling every bitcoin they mine.

The only reason you do that is because you think higher prices are on the way!

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(Source: https://twitter.com/BitcoinMagazine/status/1466464866798116869/photo/1)

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It all comes to supply and demand... A lot of mining farms accumulate coins until they have to pay bills and they have no cash reserves anymore...

Sure, but with them being publicly traded they can sell shares to raise capital and they can also use futures markets to hedge prices. It's a lot different world for miners now than it was just a few years ago. They no longer have to dump what they mine.

It's true that you can sell newly issued shares to raise capital, but there is risks with that... There is also limit how many new shares you can issue. At some point you will have to buy back excess shares or value of individual share will drop too low.

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