How important is BTC hodl for a mining company?

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Quote from: takuma sato on March 16, 2024, 11:34:27 PM

Should a mining company focus on increasing a stack of Bitcoin that they can display in public as a way to showcase ability to save in BTC and as well as show confidence in trusting BTC as a way to keep your treassury by hodling it instead of cash, or should a company in the mining field just focus on mining as much BTC as possible, including selling the BTC you mine at any rate in order to keep expanding your hashrate and do not even hold any?

Im not sure about this. Some people like to see how a miner can hold onto a lot of BTC like MARA, but others seem to not care that much and just want max efficiency. For a public miner, I guess whatever increases shareholders value the most is what works. Anyone has studied this?

A company keeps functioning if they are making profits, I believe that is the main goal of every business, before anything else a company will aim for making their ROI back first before they start doing other things.

Bitcoin miners, either personal or company, focus on mining Bitcoin and holding the stash through a bear market and start selling when Bitcoin is surging higher in a bull market, only beginners sell their Bitcoin right away as their miners make money every day.

For the best return it is better to keep mining and holding, as for companies, if there are workers to be paid I bet they will have no choice but to at least convert some Bitcoin back into Fiat to settle the workers or just pay them in Bitcoin if they want.

Ruttoshi

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Since miners are into business, when they get their bitcoin reward, they pile them up till the bull run, and sell some fractions when it is needed to be be sold to cover operational expenses.

Majority of workers will love to be paid in bitcoin and that will help them a share to get paid. Miners knows how valuable bitcoin is which will make them always having the ones that they must hodli, and they will keep on stashing up their bags, because as time passes on the reward is reduced by halve.

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Quote from: takuma sato on March 16, 2024, 11:34:27 PM

Should a mining company focus on increasing a stack of Bitcoin that they can display in public as a way to showcase ability to save in BTC and as well as show confidence in trusting BTC as a way to keep your treassury by hodling it instead of cash, or should a company in the mining field just focus on mining as much BTC as possible, including selling the BTC you mine at any rate in order to keep expanding your hashrate and do not even hold any?

Im not sure about this. Some people like to see how a miner can hold onto a lot of BTC like MARA, but others seem to not care that much and just want max efficiency. For a public miner I guess whatever increases shareholders value the most is what works. Anyone has studied this?

To be fair, I would imagine that a decent percentage of mined BTC ends up being converted back into fiat to pay for expenses. Then, whatever is left over would go into their stack.

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Quote from: takuma sato on March 16, 2024, 11:34:27 PM

Should a mining company focus on increasing a stack of Bitcoin that they can display in public as a way to showcase ability to save in BTC and as well as show confidence in trusting BTC as a way to keep your treassury by hodling it instead of cash, or should a company in the mining field just focus on mining as much BTC as possible, including selling the BTC you mine at any rate in order to keep expanding your hashrate and do not even hold any?

Im not sure about this. Some people like to see how a miner can hold onto a lot of BTC like MARA, but others seem to not care that much and just want max efficiency. For a public miner I guess whatever increases shareholders value the most is what works. Anyone has studied this?

Practise shows that holding Bitcoin is the best approach for increasing your fiat budget.
If I had a mining company I would try to mine efficiently as many coins as possible while regularly taking a low % loan to pay electricity fees, rent fees, equipment repair costs, salaries, the cost of new mining rigs and etc... I would run my mining business on loan for years and I would only sell Bitcoin during the all-time high price moments. Then I would pay loans that I have taken and would reinvest again after the bubble burst when Bitcoin reaches very low price.

Litzki1990

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Companies that do bitcoin mining usually hold bitcoins in addition to mining them. Because they always want to sell bitcoins at a good price after mining bitcoins with so much effort. It is not at all unusual if the value of Bitcoin after mining Bitcoin is between $30,000 and $40,000 and at that time they wait for a better price without selling the Bitcoin. When we manufacture different products we try to sell those products at a good price even if we have to wait for some time but we wait so that we can sell our products at a good price. Thus mining companies hold their bitcoins and wait to sell them at a good price.

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Timing is everything, being on a fixed plan of HODL or SELL won't yield the best result for the mining company, holding BTC is as important as holding cash, when it's time to pay bills or infrastructure expansion -- you need cash, when it's time to buy ASICs -- you need BTC, many people don't know this but the price of ASIC miners is directly related to the value of BTC.

In general, a company that keeps increasing its bags of BTC simply means the company is operating effectively, many investors view selling BTC as a bad thing for a mining company, and it's pretty evident during bear markets where mining companies sell a lot more BTC by being under pressure given that their power bill and operational cost is almost the same throughout the year, it's the percentage of mined BTC they need to sell to cover their expenses that would differ, two companies mining the same exact amount of BTC, one selling 50% of it another is selling 70%, this would give you the impression that the first company is doing a lot better in its overall mining operations.

takuma sato

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Quote from: philipma1957 on March 17, 2024, 05:07:44 PM

Quote from: takuma sato on March 16, 2024, 11:34:27 PM

Should a mining company focus on increasing a stack of Bitcoin that they can display in public as a way to showcase ability to save in BTC and as well as show confidence in trusting BTC as a way to keep your treassury by hodling it instead of cash, or should a company in the mining field just focus on mining as much BTC as possible, including selling the BTC you mine at any rate in order to keep expanding your hashrate and do not even hold any?

Im not sure about this. Some people like to see how a miner can hold onto a lot of BTC like MARA, but others seem to not care that much and just want max efficiency. For a public miner I guess whatever increases shareholders value the most is what works. Anyone has studied this?

Since power and labor are likely not paid in btc. They need to cash quite a bit of coins.

So I would say a ratio of spare cash and a ratio of spare coins is better than all cash or all coins.

Well maybe some employees would rather be paid in BTC than in fiat specially during a bullrun but who knows. It would be interesting to see how a Bitcoin miner would operate if it did as much as possible within BTC and never cashed out. Of course the electricity provider isn't going to want to get paid in BTC but perhaps the rest of the business could be paid in BTC. You could find a contractor to get the mining site from that is willing to get paid in BTC, you could convince your employees to get paid in BTC, you could even get the rest of expenses to be paid in BTC as long as it's not government related where you are forced to cash out to pay taxes. But I guess you will always need a % in cash.

I think miners like IREN may be doing good in the efficiency and growth side but they hold 0 BTC and some investors do not like this so if I was miner I would focus on increasing BTC hodlings as well.

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Quote from: takuma sato on March 16, 2024, 11:34:27 PM

Should a mining company focus on increasing a stack of Bitcoin that they can display in public as a way to showcase ability to save in BTC and as well as show confidence in trusting BTC as a way to keep your treassury by hodling it instead of cash, or should a company in the mining field just focus on mining as much BTC as possible, including selling the BTC you mine at any rate in order to keep expanding your hashrate and do not even hold any?

Im not sure about this. Some people like to see how a miner can hold onto a lot of BTC like MARA, but others seem to not care that much and just want max efficiency. For a public miner I guess whatever increases shareholders value the most is what works. Anyone has studied this?

Since power and labor are likely not paid in btc. They need to cash quite a bit of coins.

So I would say a ratio of spare cash and a ratio of spare coins is better than all cash or all coins.

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Quote from: takuma sato on March 16, 2024, 11:34:27 PM

For a public miner I guess whatever increases shareholders value the most is what works.

Haha everything is just for the investor Grin

this is the right to describe that.

I never know whether the Crypto Mining Companys is holding their bitcoin or rather selling it maybe in a public company everything is must be on record.

This is just my opinion If I were the owner of a crypto mining companies I'm gonna sell the bitcoin just enough to cover all the electricity, internet etc that is related to the bitcoin mining industry itself, the other Im gonna sell portion of it when it reached really peak like this time and the rest is just HODL for life hahha

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A mining companies first goal is to have a profitable business and keep that running for as long as possible. There is the cost of production that goes into keeping a mining rig functional and that should come from the profits of the business.

Quote from: takuma sato on March 16, 2024, 11:34:27 PM

Should a mining company focus on increasing a stack of Bitcoin that they can display in public as a way to showcase ability to save in BTC and as well as show confidence in trusting BTC as a way to keep your treassury by hodling it instead of cash

Mining companies can keep their cash flow in Bitcoin and some do since they were Bitcoin enthusiasts and believe in its potential for appreciation which was what influenced their decision to start mining. This is not a display to the public, just a business investment and some other mining companies can have a different model of operation.

takuma sato

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Should a mining company focus on increasing a stack of Bitcoin that they can display in public as a way to showcase ability to save in BTC and as well as show confidence in trusting BTC as a way to keep your treassury by hodling it instead of cash, or should a company in the mining field just focus on mining as much BTC as possible, including selling the BTC you mine at any rate in order to keep expanding your hashrate and do not even hold any?

Im not sure about this. Some people like to see how a miner can hold onto a lot of BTC like MARA, but others seem to not care that much and just want max efficiency. For a public miner I guess whatever increases shareholders value the most is what works. Anyone has studied this?

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