Corporate entities are starting to hold more Bitcoins on their balance sheet as they consider the leading cryptocurrency to be an excellent store of value.
US-Listed Mining Firms Are Hoarding Bitcoin
Cryptocurrency mining firms in America are currently hoarding Bitcoins with the hopes that the price of the leading cryptocurrency would rally higher. This comes as Bitcoin crossed the $55k mark and could be headed towards $60k in the coming days.
According to the latest monthly production report, US-listed mining firms Riot, Marathon, Bitfarms, Hut8, Greenidge, Argo, and HIVE mined approximately 6,463 bitcoins in the third quarter of the year. This figure accounted for 7.5% of the total BTC block rewards available during Q3 of 2021.
Furthermore, the report revealed that the Bitcoin mining production levels of Riot, Marathon, Bitfarms, Hut8, Argo, and HIVE surged by 82% in the last quarter compared to the second quarter of the year. The increase in mining production was due to massive expansion in their mining machines and the crackdown on cryptocurrency mining activities in China.
While hoarding the bitcoins could pay off for the companies, in the long run, they have to think about how to pay the bills in the short term. The mining firms must think about how to pay the light bills, pre-order new equipment, expand their facilities in North American and handle other utility bills.
Bitcoin Heading For The $60k Level
The cryptocurrency market has been performing well since the start of this quarter. BTC finally crossed the $50k mark earlier this week and is now trading close to the $55k level again. It reached the $56k level earlier today before slightly retracing to now trade above $54k per coin.
However, with the current market momentum, Bitcoin could soon reach $60,000 in the coming days. Most market experts and analysts are optimistic that Bitcoin will reach $100,000 before the end of the year. However, it will have to rally by nearly 100% from its current price before it can reach that level.
This article was originally posted on FX Empire