MicroStrategy purchased more bitcoins, while an analyst’s team raised the price target for Coinbase. First, let’s look at the bitcoin mining industry. They are raising more capital through convertible notes.
Bitdeer announced a convertible senior note offering of $360,000,000 last month. Then last week, Marathon Digital, Core Scientific and Iris Energy initiated convertible notes offerings — amounting to $850 million, $550 million and $400 million, respectively.
According to TheMinerMag, seven publicly listed BTC mining and data centers have raised $5.2 billion in convertible notes. Around 70% of this was raised in the past four weeks.
The MinerMag statistics do not include Riot Platforms’ $500 million convertible note offering on Monday.
BlocksBridge Consulting CEO Nishant Sharma explained that the mining firms are capitalizing upon the increasing bullishness of institutional investors towards bitcoin.
“This trend is likely to continue, as we’re in the early stages of a new crypto bull run,” he said. Bitcoin’s price was about $98,000 at 2 pm ET Monday — down 3% from 24 hours ago.
Bitdeer stated that proceeds would be spent on data center expansion as well as ASIC mining rig manufacturing and development.
Mark Palmer of Benchmark Research wrote that in his research note on Monday, the stock had risen by 86% during the last month. It also jumped 27% just for Friday. This rally was triggered by the firm’s decision to increase its SEALMINER A2 miner hashrate forecast for 2025, from 18 exahash/s (EH/s), to 35 EH/s.
Palmer raised his Bitdeer stock price target from $16 to $29 — noting “the company’s multifaceted business model provides investors with multiple ways to realize upside.”
Marathon and Riot have both stated that their intention is to purchase more BTC with the money they raised. MARA’s and RIOT’s share prices have fallen by 3% and 23% respectively over the last month.
Sharma stated that it would not surprise him if Marathon followed the car aggressively. “compelling precedent” MicroStrategy’s set of recommendations, noting that CleanSpark and MARA, as competitors, are in a good position to compete. “decisive action” Mining and “hodling.”
Marathon has 34,959 BTC while CleanSpark holds 9,297 Bitcoins. Hut 8 Mining holds 9,122 BTC. It said it plans to use proceeds from the latest stock and at-the-market programs (ATMs) in order to purchase additional bitcoin “as a strategic reserve asset.”
MicroStrategy, as teased above, bought an additional 21,550 Bitcoins between December 2 and 8 (costing about $2.1 Billion in cash), bringing the total to 423,650 BTC.
MSTR stock was down more than 4% at 2 pm ET — a bit more than Monday’s BTC price decline.
Coinbase had dropped 7% in price to around $318 by the time of that report. Needham analysts John Todaro & Brian Vieten increased their COIN Price Target from $375 to $400 on Monday. They noted that the crypto exchange was on course to achieve its biggest volume month (in Dec) since May 20, 2021.
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