Interest in Bitcoin from American Banks: Hut 8 on the Front Line
Date: 2024-04-05 Author: Henry Casey Categories: BUSINESS
Hut 8's Leadership in Mining
The head of the mining company Hut 8, Asher Genut, announced significant interest from large banks in purchasing Bitcoin directly from the “producers”. Hut 8, which ranks fourth among the largest corporate holders of Bitcoin after MicroStrategy, Marathon Digital and Tesla, has 9,110 coins in its assets, which is approximately $600 million at current exchange rates.
Bitcoin Shortage Amid Surge in Demand
The recent surge in demand for Bitcoin from exchange-traded funds has led to a supply shortage on exchanges. The balance of exchange-traded funds already totals 835 thousand Bitcoins, which is $55 billion.
Expectations From Halving
A rapid halving of the amount of Bitcoin mined ahead of the halving could lead to worsening supply shortage problems. This factor, combined with growing demand for Bitcoin from exchange-traded funds, could significantly increase the price of the cryptocurrency.
Genut does not predict a mass bankruptcy of miners after the halving, noting that large operators with low production costs will become preferable for investors in the field of cryptocurrency mining.
Interest in Bitcoin from US banks, especially in the run-up to the halving, indicates growing recognition of the cryptocurrency as an asset with high growth potential. Hut 8 management expects this trend to continue after the reduction in mining rewards, opening up new prospects for the development of the cryptocurrency market.
