Companies are starting to hold more bitcoin on their balance sheets because they think cryptocurrencies are an excellent store of value.
U.S.-listed mining companies are hoarding bitcoin
American cryptocurrency mining companies are currently hoarding bitcoin, and they think the price of cryptocurrency will rise. That's because Bitcoin broke through the $55000 mark and could reach $60, 000 in the next few days.
According to the latest monthly production reports, US-listed mining companies Riot, Marathon, Bitfarms, Hut8, Greenidge, Argo and HIVE mined about 6463 bitcoins in the third quarter of this year. This figure accounts for 7.5 per cent of the total BTC blocks available in the third quarter of 2021.
In addition, bitcoin mining production at Riot, Marathon, Bitfarms, Hut8, Argo and HIVE surged 82 per cent in the last quarter compared with the second quarter of this year, according to the report.
While hoarding bitcoin can pay off for companies, in the long run, they must think about how to pay their bills in the short term. Mining companies must consider how to pay for electricity, book new equipment, expand facilities in North America and other utilities.
Bitcoin goes to $60,000
The cryptocurrency market has performed well since the start of the quarter. BTC finally broke the $50, 000 mark earlier this week and is now nearing $55000 again. It reached the level of $56000 earlier today, then fell back slightly, and each token is now trading at more than $54000.
However, with current market momentum, Bitcoin could soon reach $60000 in the next few days. Most market experts and analysts are optimistic that Bitcoin will reach $100000 by the end of the year.