Data center infrastructure provider Hive Digital is doubling down on its long-term Bitcoin treasury strategy and is using the recent market sell-off to expand its mining capacity and acquisition targets, signaling a growing shift among public miners to retain their mined assets. In an interview with Cointelegraph, Hive Digital’s chief financial officer, Darcy Daubaras, said the company remains focused on “retaining a significant portion of its mined Bitcoin to benefit from potential price appreciation.” This requires an active approach to treasury management to optimize liquidity in the face of steep market corrections, such as Bitcoin’s (BTC) recent 30% drop.
As Cointelegraph reported, public miners have increasingly shifted to equity dilution — or issuing new shares to raise capital — as part of a broad deleveraging process due to high interest rates and declining creditworthiness. Absent these strategies, miners are usually forced to aggressively sell their mined Bitcoin to fund their operations or expansion. While Hive isn’t opposed to selling some of its Bitcoin holdings — it did so to fund the acquisition of Bitfarms’ 200-megawatt facility in Paraguay — it’s better to “selectively sell Bitcoin to fund accretive investments, [which] creates a balance of growing our operations and positioning ourselves for long-term success,” said Daubaras.
Related: BTC miners adopted ‘treasury strategy,’ diversified business in 2024: ReportImportance of diversification, scalabilityBull market conditions make it easier for miners to stack their Bitcoin, but long-term success requires navigating the minefield of volatile prices, growing competition, and rising electricity and hardware costs. To combat these and other challenges, Hive has revamped its business model to include AI data centers and has prioritized renewable energy sources.
The story "Hive doubles down on BTC hodl strategy amid miner equity dilution, debt reliance" has 502 words across 19 sentences, which will take approximately 3 - 5 minutes for the average person to read.
Which news outlet covered this story?
The story "Hive doubles down on BTC hodl strategy amid miner equity dilution, debt reliance" was covered 10 hours ago by Coin Telegraph, a news publisher based in United States.
How trustworthy is 'Coin Telegraph' news outlet?
Coin Telegraph is a fully independent (privately-owned) news outlet established in 2013 that covers mostly crypto news.
The outlet is headquartered in United States and publishes an average of 337 news stories per day.
It's most recent story was published 8 hours ago.
What do people currently think of this news story?
The sentiment for this story is currently Negative, indicating that people regard this as "bad news".
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
