Shares of bitcoin (BTC-USD) mining operators, including Riot Blockchain (RIOT) and Marathon Digital Holdings (MARA), have moved into the red Thursday morning. The stocks have reversed course following major gains amid pending approval for a spot bitcoin ETF by the Securities and Exchange Commission (SEC).
Yahoo Finance Crypto Reporter David Hollerith takes a look at Riot’s and Marathon’s plans to expand its crypto mining operations in 2024 and Cathie Wood’s recent sale of ARK Invest’s remaining Grayscale (GBTC) shares.
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Shares for Bitcoin mining companies are reversing course this morning this comes after Double digigit gains minosa coming off hopes of a spot Bitcoin ETF and a positive outlook for cryptocurrencies in 2024 let’s bring in Yahoo financers David holth to give us more details hey David hey relle yeah I Bitcoin has been
Down uh uh or it’s slightly up but it’s been more or less flat over the past week and uh the important thing to know about um bit coin miners is that um they have to borrow a lot of money uh to make upfront uh purchases for mining
Equipment and um two notable uh publicly traded uh mining firms uh Riot and Marathon digital have both announced Acquisitions Riot for um purchasing more um mining equipment and Marathon to acquire two new Bitcoin mining uh sites um so they are heavily levered as a result of needing all this debt um so
There there stocks can be expected to trade uh fairly volatile but you know I would say outside of the uh on the day movements in general um the amount of uh investment that these firms are taking given that they’re so heavily levered is sort of one more data point we can take
Around this uh optimism for what uh Bitcoin might look like next year um obviously there’s the possibility of the Bitcoin spot ETFs to be to be uh potentially launched as soon as January um if the SEC grants approval um but you know we also have uh some a more
Optimistic macro environment with the possibility of uh fed interest rate uh uh changes next year and then also the Bitcoin having which is sort of a specific Bitcoin type Supply change that happens every four years so in general I think this is kind of an A sign uh
Despite theond the day moves um about you know there’s a lot more uh leverage that uh industry firms are putting into um an optimistic next year for Bitcoin and David speaking of signs and kind of reading the tea Le so Kathy Wood Arc invest F invest founder and CEO she also
Sold the remaining 2.25 million shares in grayscale Bitcoin and bought over 4 million shares of pro shares Bitcoin help us understand what’s going on there and kind of what this means for the landscape within Bitcoin yeah so uh wood was on Bloomberg TV this morning and she also spoke to us
Earlier in the week and on Bloomberg she said uh that the GP gbtc shares um were sold uh one out of an abundance of caution uh given the uncertainty about whether uh grayscale would be able to uh convert their Investment Trust into an ETF uh given the Tea Leaves of potential
Approval for these products in January uh she also indicated that gbtc has also had a very good run this year year um earlier this week when she spoke to us she admitted that um in anticipation for the ETF movement um investors have seen nice profits um and because of grayscale
The grayscale Bitcoin trust historical discount um because it’s not a full ETF um it’s actually seen um much higher return than Bitcoin this year um so they’re in a fairly good place to take some profits Arc is also in the running to gain SEC approval to issue one of
These spot Bitcoin ETFs um and speaking with our anchor Julie hman uh this week she would actually admitted uh that of the dozen or so potential issuers of these uh products if they are all to be cleared um there’s still sort of a uh
Only a chance of uh one to three or so is what she said winners to take market share uh the ETF game is is is all about liquidity um and I I think I would just add to that too um we don’t have any clarification on this but given that Arc
Is is uh potentially launching an ETF uh spot Bitcoin ETF in the near future uh it would it would make sense that um Arc could potentially be taking some of those funds it sold from grayscale um and uh maybe temporarily parking them in Bido we don’t know this for sure and
Eventually uh putting that money into their own ETF to add sort of a liquidity boost or Advantage um when these ETFs or if these ETFs uh are launched um to help them sort of gain market share all right David holler always having us covered from Bitcoin to Banks thank you
1 Comment
All in on RIOT and won’t regret it in next 15 months 🤑🚀