Crypto miners around the world are currently stocking up bitcoin in the midst of its rally in the cryptocurrency market that is driving its price up according to Kraken Intelligence.
With just a small number of crypto miners getting profit even though the crypto has recently attained all-time high, miners rely on pools to accumulate bitcoin.
According to Pete Humiston, Manager at Kraken Intelligence, “Both large-scale entities and smaller players, who secure the network via mining pools, appear to be stockpiling bitcoin.”
This “supply shock” appears to have had a significant contribution to bitcoin attracting over 50% as data indicates a little profit.
Last month, updates from crypto miners suggest that they have been laying up bitcoins for a month.
A good number of these crypto miners are using bitcoins to drive their balance sheets.
“We’ve seen publicly-listed mining companies, like Argo Blockchain, use bitcoin as collateral in order to secure fresh funding for further capital investment,” Humiston stressed.
Nevertheless, the report also indicated that smaller crypto miners making profits don’t translate to a bearish move.
“Smaller players could be selling into the bitcoin rally to fund the purchase and upkeep of ASIC mining rigs,” Humiston added.
Irrespective of how crypto miners are making use of their new coins, it remains a fact that a significant proportion of them are currently holding their mined bitcoins. This is seen as more companies expand their operations into mining.
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