NOIDA (CoinChapter.com) — Three of the largest U.S. Bitcoin mining companies hold BTC tokens, suggesting that publicly traded companies view the token as a store of value. Moreover, the pattern suggests that companies believe the BTC price could rise soon, which could help supplement their earnings reports.
Marathon Digital Holdings, the largest Bitcoin mining company with BTC holdings, held over 15,740 BTC as of January 31. The second largest mining company, Hut 8, holds nearly 9,200 BTC tokens (December 2023), while Riot Platforms is a close third. There are 7,650 BTC tokens in the vault.
The three companies account for over $1.4 billion in Bitcoin. However, as the Bitcoin halving approaches, the price could skyrocket due to reduced supply, which could force companies to sell off some of their holdings to record profits.
Interestingly, the number of publicly traded Bitcoin mining companies holding BTC tokens as a store of value highlights the growing mainstream adoption of the digital asset.
Moreover, US-listed Bitcoin mining companies holding BTC may indicate that regulatory approval for a spot BTC ETF has brought some clarity to the token’s legal status.
Not all Bitcoin mining companies have this.
However, not all Bitcoin mining companies hold mined BTC tokens. Some companies, most of which are not located in the United States, are selling their Bitcoin holdings.
Sales activity hit an eight-month high in January this year with more than 4,000 coins worth about $173 million moved from miners’ wallets to cryptocurrency exchanges. This figure is the highest daily miner-to-exchange flow since May 2023.
Despite the dumping, CryptoQuant analysts noted that the market absorbed the increasing selling pressure.calmly,” And the move had little impact on the reserves of its mining portfolio.
The market’s reaction to miners dumping their holdings suggests that the actual impact on the market is likely to be minimal, although it is often theorized that miners selling newly mined Bitcoin could put downward pressure on the price. . According to the report, miners’ share of Bitcoin on-chain volume is typically less than 0.01% of total on-chain volume.
Additionally, the price cap ahead of the Bitcoin halving event led to a noticeable increase in Bitcoin sales by miners. Miners may liquidate part of their holdings to cover operating costs or take advantage of current market conditions.
Meanwhile, Bitcoin whales accumulation BTC tokens, approximately 73 new whales currently hold 1,000 Bitcoin.
BTC price continues to consolidate
As Bitcoin mining companies held onto BTC tokens, the token consolidated near the $43,000 price level. BTC price recorded a slight increase of 0.9%, reaching a daily high near $43,180. The lack of activity suggests traders are waiting around for the halving to arrive.
If BTC price starts to rise, the token could reach resistance near $45,000. Conversely, a slip here would push BTC price towards the 50-day EMA (purple wave) support near $42,000. A violation of immediate support could cause the token to fall towards the $40,000 support area before recovering.
BTC’s RSI remained neutral at 53.73 points on the daily chart.