Bitfarms and MicroStrategy Continue Bitcoin Acquisitions Ahead of Halving Event, Major Institutions Poised for Bitcoin ETFs
Summary:
Bitcoin mining firm Bitfarms has purchased an additional 51,908 ASIC miners ahead of the upcoming halving event. Concurrently, MicroStrategy utilized an $800 million convertible note offering to acquire 12,000 more Bitcoin. Major corporations, institutional consultants, and wirehouses are expected to make significant investments in Bitcoin ETFs in the following quarter. Furthermore, MicroStrategy, which now holds 205,000 BTC, bought its latest set at an average price of $68,477 per BTC. Crypto asset manager Bitwise reports that "trillions of dollars in assets" from various institutions are preparing to buy into Bitcoin ETFs by June-end.
Bitfarms, a Bitcoin mining company, has seized the opportunity to acquire an additional 51,908 ASIC miners, in the wake of the upcoming halving event, merely five weeks away. Simultaneously, Michael Saylor's MicroStrategy utilized an $800 million convertible note offering to snap up another 12,000 Bitcoin. As we move into the next quarter, cryptocurrency investors can anticipate substantial investments into Bitcoin exchange-traded funds (ETFs) from substantial consulting firms, institutional consultants, and major wirehouses.
To boost its mining capacity in preparation for the probable halving event next month, Bitfarms secured an additional 51,908 ASIC miners. The acquisition comprises 28,000 Bitmain T21 ASIC miners, 19,280 Bitmain T21 miners, 3,888 Bitmain S21 miners, and 740 Bitmain S21 hydro miners. The retail market values each Bitmain T21 ASIC miner at approximately $3,000 with a hash rate of 190 TH/s. Bitfarms' decision materialized ahead of the anticipated hardware price inflation, according to CEO Geoff Morphy, as Bitcoin's four-yearly halving transition sets in.
Heralding the halving event, the Bitcoin market traditionally experiences a Pre-Halving Rally which influences Bitcoin's price significantly, though with some delay. However, this year is unprecedented as Bitcoin's price achieved a new all-time high before the halving itself for the first time in history.
Following Bitcoin's new all-time high peak on March 6, MicroStrategy declared its plans for a new round of convertible notes. Two days later, the private offering concluded, raking in an aggregate principal amount of $800 million. Founder and executive chair of MicroStrategy, Michael Saylor, broadcasted on a social media platform that the extra liquid assets and the net outcome of the note offering were channeled towards the procurement of an additional 12,000 Bitcoin at an average rate of $68,477 per BTC.
Prior to this purchase, MicroStrategy possessed approximately 193,000 BTC, bought at an average price of $31,544. This gave them a worth of $12.9 billion and a return on investment of 112% since their first foray into BTC. With the latest acquisition, the company has 205,000 BTC worth $6.91 billion, bought at an average price of $33,706 per coin.
According to Bitwise, a crypto-native asset manager, institutions accounting for a vast sum in "trillions of dollars in assets" are equipping themselves to invest in spot Bitcoin ETFs by June-end. An investment note circulated to investors by Bitwise on March 9 conveyed discussions with large corporations, significant wirehouses, and institutional consultants keen on amplifying their Bitcoin exposure. Matt Hougan, Bitwise's Chief Investment Officer, stated that their current buyers included retail investors, family offices, hedge funds, and venture capital firms. However, who would buy tomorrow should be viewed with the same significance as who is buying today, he noted.
This article is purely informational and does not contain investment advice or recommendations. Investment and trading ventures carry risks, and readers are responsible for conducting their research before making a decision. Geraint Price, Sam Bourgi, and Felix Ng contributed additional reporting for this article.
Published At
3/11/2024 10:56:35 PM
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