Publicly traded U.S. crypto mining companies have significantly increased their bitcoin (BTC) holdings over the past year, doubling their total to 92,473 BTC valued at approximately $8.6 billion as of the end of December. This surge in holdings coincides with a remarkable 120% rise in the price of the largest cryptocurrency, according to data from TheMiningMag.
Leading this charge is MARA Holdings (MARA), which alone holds 44,893 BTC, accounting for nearly half of the total bitcoin holdings among these publicly listed companies. The only company surpassing MARA in this regard is MicroStrategy (MSTR), holding a staggering 450,000 BTC.
The strategy of investing in bitcoin and retaining it for the long term, more popularly referred to as HODL—originating from a typographical error over a decade ago—has gained notable traction in the financial landscape over the last 12 months. This trend reflects a growing confidence among institutional investors regarding the viability and stability of bitcoin as an asset.
In addition to MARA and MicroStrategy, three other prominent miners have amassed over 10,000 BTC: Riot Platforms (RIOT) with 17,722 BTC, Hut 8 (HUT) with 10,171 BTC, and CleanSpark (CLSK) with 10,097 BTC, according to Bitcoin Treasuries.
However, not all mining firms adhere to the HODL strategy. Companies like IREN (IREN), TeraWulf (WULF), and Core Scientific (CORZ) maintain minimal or no bitcoin reserves. These miners have pivoted towards emerging sectors, such as artificial intelligence (AI) and high-performance computing (HPC), in response to the increasingly competitive environment in the crypto market.
Despite the significant rally in bitcoin’s price, the share prices of mining companies have largely failed to keep pace. While several miners underperformed relative to bitcoin and broader crypto-related equities such as MicroStrategy, standout performers like Core Scientific and TeraWulf, with their strategic focus on AI, experienced impressive returns exceeding 300%.
Looking ahead, 2024 has proven more favorable for miners adopting the HODL approach. Companies like RIOT, HUT, and CLSK have not only met but outstripped bitcoin’s growth, delivering significant returns to their investors. In contrast, Bitdeer (BTDR) experienced a decline after a strong performance earlier in the year.
As the landscape continues to evolve, the ongoing strategies of crypto miners will be pivotal in shaping the future of the industry and their ability to navigate the complexities of the crypto market.
