The rise of major Bitcoin mining institutions is inevitable

The rise of major Bitcoin mining institutions is inevitable


There are very few investments that can deliver an infrastructure-style downside case with a venture-capital-style upside. The combination of energy arbitrage with accumulating a balance sheet of Bitcoin (BTC) can deliver this. That is why we are seeing a rush of institutions pouring into the Bitcoin mining space and starting to build out megafacilities.

Securing new-generation hardware

At its peak performance in 2018, Bitmain was able to produce over 95,000 rigs per week. However, since that point, production levels have come down, a partial result of its ongoing legal battle. In the other corner, MicroBT is set to deliver 1.3 million machines this year, adding 25,000 rigs per week to the mix.

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The West only receives a finite allocation of these new machines, and with 17 publicly listed mining companies and ASIC financiers and large co-locations announcing purchases weekly, you can see how that fresh supply of equipment quickly dries up. Building relationships with the manufacturers is now crucial

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