$BTC #mineria
Institutional investments are increasing.
The attractive revenues of Bitcoin mining industries have greatly attracted the attention of institutional investors. This process is easy to detect: Bitcoin mining pools in the U.S. accounted for over 40% of the global Bitcoin network's hashrate in 2024.
According to research by EY-Parthenon and Coinbase, 83% of the 352 global institutions plan to increase their cryptocurrency allocations this year, while 51% of asset managers are considering investing in digital asset companies, including mining companies. This is why I am not surprised to witness significant investments in Riot Platforms, CoreWeave, and other players in the mining industry.
The favorable market sentiment has paved the way for more initial public offerings (IPOs) and specialized funds aimed at mining companies. In addition to securing a $650 million investment, CoreWeave aims to go public with a $4 billion IPO to help the Nvidia-backed company reach a valuation of $35 billion.
Bgin Blockchain, a cryptocurrency miner manufacturer based in Singapore, recently applied to go public in the United States. Renaissance Capital, an investment advisory firm, expects Bgin Blockchain to raise $50 million in its IPO.
This increase in institutional momentum will benefit the Bitcoin mining sector, as it will drive demand and reduce the available supply in the market. As more large players accumulate and hold Bitcoin, market scarcity could increase, supporting higher prices and, in turn, boosting miner profitability.
