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As the holiday season is in full swing, with Christmas, Hanukkah, and the upcoming Kwanzaa celebrations, the cryptocurrency world has also been buzzing with activity.
Bitcoin miners, akin to Santa’s elves, have been busy in their own way, raising capital for various purposes. While some miners, like Bitdeer, are focusing on datacenter expansion and mining rig development with their funds, others such as Marathon and Riot Platforms are opting to increase their Bitcoin holdings.
Recent announcements from industry players like Hut 8 and CleanSpark showcase the diversity in opinions among Bitcoin miners on how best to utilize the capital they raise.
Just days ago, Hut 8 made headlines with its purchase of 990 BTC for $100 million, at an average price of around $101,710 per coin. On the other hand, CleanSpark’s CFO, Gary Vecchiarelli, revealed that his company is prioritizing cost-effective Bitcoin production over buying at current market prices.
Vecchiarelli emphasized CleanSpark’s focus on generating Bitcoin at a significant discount to spot prices, with a marginal production cost of approximately $36,250 per coin in the last quarter. The company’s strategic goals include increasing its hash rate to 50 EH/s and expanding its digital asset management group to oversee its Bitcoin treasury, which currently stands at 9,297 BTC as of November 30.
While Hut 8 continues to add to its Bitcoin reserves, Marathon Digital has been using funds from convertible notes to accumulate a significant holding of 44,394 BTC by December 18.
Vecchiarelli highlighted CleanSpark’s unique approach, stating that the company’s healthy margins enable it to steadily build its Bitcoin holdings in a sustainable manner, unlike some of its peers. Hut 8’s CEO, Asher Genoot, echoed this sentiment, emphasizing that their Bitcoin reserve is meant to complement their core growth strategy, which is rooted in disciplined and fundamentals-driven expansion.
Genoot also mentioned that while Hut 8 doesn’t have strict price thresholds for Bitcoin purchases, they are cautious about valuation extremes and prioritize risk-adjusted returns in their investment decisions.