According to The Block on the 13th (local time), JPMorgan analysts said Bitcoin miners are trying to cut costs and boost revenue.
Nikolaos Panigirtzoglou, managing director at JP Morgan, said in a statement that the company is strengthening its "vertical integration" strategy to maintain its competitiveness.
In a report released today, a team of analysts led by Panigirtzoglou said publicly listed bitcoin miners were taking advantage of rising hash rates and volatility in bitcoin prices.
In particular, the company revealed that it is actively pursuing a vertical integration strategy to reduce operational costs. Vertical integration means that miners secure their own power sources and develop their own mining chips.
Last month, Mara Holdings acquired a wind farm in Texas, US, while Bitdeer is acquiring a gas-fired power plant project in Canada.
Analysts said such strategic moves not only help meet miners' energy needs but also help them reduce costs.
BitDeer is also working with Taiwanese semiconductor manufacturer TSMC to develop more efficient bitcoin mining chips to replace old mining equipment.
Bitcoin miners are also part of a horizontal market that is trying to diversify into new businesses such as artificial intelligence (AI) and high-performance computing (HPC).
There has been some consolidation, but JP Morgan analysts said, "Right now, miners are focused on cheap electricity and optimizing mining equipment, making cost reduction their number one priority."
This is because there is a high likelihood of an increase in the hash rate and increased volatility in Bitcoin prices following the Bitcoin halving in 2024.
2025/03/14 14:34 KST
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