Bitcoin mining — Institutions boost investments amid favorable US climate
The Bitcoin mining industry is attracting institutional investors, driven by a favorable regulatory environment in the US and the profitability of Bitcoin (BTC). Institutions are diversifying their operations by allocating computing power to AI, increasing their attractiveness. Mining profitability varies significantly, with costs to mine 1 BTC for US-listed miners reaching $55,950, while estimates differ globally due to factors like electricity rates and operational costs. The Bitcoin network's transaction fees, averaging around $595,000 daily, further enhance miners' revenues. This surge in institutional interest has led to increased investments in mining companies, illustrated by CoreWeave's planned IPO and significant investments in firms like Riot Platforms. Recent political changes favoring crypto policies have also boosted optimism. The Bitcoin mining sector is not only contributing to the economy but is also evolving into essential data infrastructure for AI, reinforcing its potential for future growth. As institutional investments rise, Bitcoin mining may become a major player in the digital asset arena, positioning the US at the forefront of this emerging market.
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