Large publicly-traded bitcoin miners are accumulating bitcoin by raising capital or leveraging their BTC holdings to help cover operating costs rather than selling it for fiat currency. By loaning their bitcoin holdings to earn fiat currency, they are able to cover operating expenses.
Hut 8 Mining has reportedly been loaning out 2,000 BTC – nearly 40% of its stash – to earn a 2% interest rate. At current prices, 2,000 BTC are worth around $130 million, meaning the firm is earning an annualized $2.6 million.
Hut 8 Mining now has 5,503 BTC in its treasury after growing its holdings 68% since March. Its BTC holdings are behind only those of Marathon Digital Holdings, which holds 7,453 BTC. Behind Hut 8 is Riot Blockchain, with 3,995 BTC, followed by Bitfarms0 with 2,312.
Hut 8 deploys 1,000 BTC with Genesis Global Capital and 1,000 with Galaxy Digital, which is then used for institutional trading arbitrage opportunities.
Source: https://www.cryptocompare.com/email-updates/daily/2021/nov/18/
