Bitcoin Miners Invest in New Machines and Embark on a HODLing Strategy
CryptoNewsTerminal Staff11 Sep, 2024
Bitcoin Miners Invest in New Machines and Embark on a HODLing Strategy
Bitcoin miners are navigating rising operating costs by purchasing new mining machines and adopting a HODLing strategy for mined BTC, according to Decrypt, a crypto media outlet. The move comes amidst increasing mining difficulty and decreasing transaction fee revenue. However, the arrival of new energy-efficient mining machines in 2023 is helping offset some of the rising expenses. Mining companies are also shifting their strategies towards accumulating BTC instead of selling it to cover costs. Marathon Digital Holdings, for example, adopted a "HODL" strategy in July and even purchased additional BTC on the open market. Industry experts believe that miners' decision to hold BTC is a reflection of their confidence in future price appreciation. However, it also means that if miners sell their holdings during a downturn, it could exacerbate downward pressure on the market.
