Bitcoin rallies above $55K as mining giants reserve production
Monthly production updates from large crypto miners disclosed the accumulation of Bitcoin reserves earned by companies in the last month of Q3. The companies have held onto their September earnings as Bitcoin pushed past the recent market crash that took its price down to $40,000.
Riot Blockchain announced on October 6 that it has 3534 Bitcoins as of September 30, an increase of 406 Bitcoins from August.
Meanwhile, Marathon Digital Holdings said on October 4 that it had mined 340.6 Bitcoins for the month and currently holds 7035 Bitcoins. Explaining the current hodl-ing trend, Marathon CEO Fred Thiel told crypto media Blockworks:
“By miners holding bitcoin and not liquidating, it creates a liquidity crunch in the marketplace, which goes to help the price of bitcoin. Not that miners are collaborating on this in any way, but I think all miners believe that the price of bitcoin will go up, and by not selling bitcoin, we essentially cause the price to go up somewhat.”
In addition, Canada’s Hut 8 Mining said yesterday that it has hodl-ed all of its 264 self-mined Bitcoins produced in September. The company has 4,724 bitcoins in its reserves, valued at over $230 million as per current levels.
Hut 8 Mining CEO Jaime Leverton said in a statement:
“We are thrilled with our current amount of Bitcoin held in reserve as well as being ahead of schedule on our commitment to the market to have over 5,000 self-mined Bitcoin by [the] end of Q4.”
The share prices of Riot, Marathon, and Hut 8 have risen by 57%, 254%, and 232%, respectively.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow