#BTCRebound
Institutional investments on the rise
The appealing revenues in the Bitcoin mining industries brought huge attention from institutional investors. This process is easy to spot: Bitcoin mining pools in the US 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 crypto allocations this year, while 51% of the asset managers are considering investments in digital asset companies, including mining companies. That’s why I’m not surprised to witness huge investments in Riot Platforms, CoreWeave and other mining industry players.
The favorable market sentiment has paved the way for more initial public offerings (IPOs) and specialized funds targeting mining companies. In addition to securing the $650-million investment, CoreWeave aims to go public with a $4-billion IPO to help the Nvidia-backed company reach a $35-billion valuation.
Bgin Blockchain, a Singapore-based crypto miner manufacturer, recently filed to go public in the US. Renaissance Capital, an investment advisory firm, expects Bgin Blockchain to raise $50 million for its IPO.
This surge in institutional momentum is set to benefit the Bitcoin mining industry by driving up demand and tightening available supply on the market. As more large players accumulate and hold Bitcoin, market scarcity could increase, supporting higher prices and, in turn, boosting miner profitability.
