We have witnessed a massive expansion of Institutional Bitcoin Mining activity in 2020 since the Halving occurred in May. This has led to an unprecedented demand for next-gen mining rigs and created lead times of 5+ months for models like the Bitmain Antminer S19 Pro. Bitcoin Network Hashrate and Difficulty continue to increase steadily as more of these new models come online each day. Although this activity is making the Bitcoin Mining landscape more competitive, it is also providing a very strong, positive signal for the Market. Growing Institutional investment in Bitcoin Mining indicates growing conviction in the future of Bitcoin.

In traditional markets, institutional sponsorship is seen as a very strong, positive indicator for the future of an investment. It simply refers to the ownership of an asset by reputable mutual funds, banks, pension funds, venture capital firms, hedge funds, and other large institutions. These professional investors have teams of analysts researching thousands of the best ideas and they typically deploy capital with long time horizons (2 to 4+ years). It is great confirmation to see these institutions deploying capital to the same investments as you. This is also referred to as “following the smart money.”

Below are some of the more recent, notable Institutional Investments in Bitcoin & Bitcoin Mining since the Halving in May:

Foundry - Digital Currency Group invests $100 million in Bitcoin Mining through its newest subsidiary, Foundry.[1]
Marathon Patent Group (MARA) – Added an additional 120 PH/s this summer and purchased 1,155 PH/s worth of mining rigs from Bitmain to be delivered between January and June 2021.[2]
RIOT Blockchain (RIOT) – Increased their hashrate by 110 PH/s this summer and are expecting to add an additional 650 PH/s by early 2021.[3]
Hut 8 (HUT) – Hut 8 secured a $6.1 million investment from Fidelity, who now owns 10.6% of Hut 8. Hut 8 has announced that they will be adding over 275 PH/s of New Microbt mining rigs between July and November 2020.[4]
HIVE Blockchain (HIVE) – Added over 112 PH/s this summer with purchase of 1,000 Microbt & 200 Antminer S17e’s. [5]
DMG Blockchain (DMGI) – Expects to add over 120 PH/s to their mining operation between May & December 2020.[6]
MicroStrategy (MSTR) – Invests $450 million of Company Treasury in Bitcoin.[7]

Capture the Opportunity in Bitcoin Through Mining

We are in the midst of a new Hardware Upgrade Cycle for Bitcoin Mining Post Halving 2020 - just like the rare opportunity that was presented into the 2016 Halving. Miners who deployed early in the 2016 Hardware Upgrade Cycle outperformed Hodling Bitcoin by 100%+ and returned 1,249%. Contact us directly for the full analysis.

By marrying the proper strategy and time horizon, Bitcoin Mining offers opportunities to significantly outperform simple buy and hold investment strategies. Bitcoin’s extreme volatility is best managed with a Dollar Cost Average Strategy, which mining best achieves. Dollar Cost Averaging is an excellent strategy applied to markets with extreme volatility and an asset that one wants to accumulate a large position in over a longer time horizon. The Mining Market has matured significantly since 2016, so we do not expect the same magnitude of gains in 2020. However, we believe that the "Mine & Play with House Money" strategy remains the most probable strategy to outperform over the long-term (2-4 years). This analysis is NOT INVESTMENT ADVICE. The purpose of this analysis is not to project future returns, but rather to identify the optimal strategy to capture the opportunity in Bitcoin.

The Blockware Model - Mine like an Institution Without the Size Requirements

The publicly traded mining companies listed above are positioning themselves to capture the opportunity by maximizing hash power and avoiding unnecessary CapEx. Most of them have secured Hosting Contracts with third party vendors rather than spending capital on facility buildout. Hosting contracts ensures that a company's OpEx is fixed and thus all of its excess capital can be deployed on more mining rigs. The Blockware Model offers the same arrangement for miners of all sizes.

Click the link below to take a video tour inside the Blockware Mining Colocation Facility:
https://drive.google.com/file/d/1EgEkzGuowv92KrpejF_ZCWivESDDdKv7/view
Contact us HERE to get up and hashing within 48 hours. Blockware has S17+'s available on hand in the US with all-in Hosting Rates from $0.055 - $0.065 kWh depending on order quantity. S19 Pro's are now sold out until February, don't miss out on the next 5+ months of Mining!

[1] https://www.businesswire.com/news/home/20200827005146/en/%C2%A0DCG-Enters-into-Bitcoin-Mining-with-Newest-Subsidiary-Foundry

[2] https://www.globenewswire.com/news-release/2020/08/24/2082590/0/en/Marathon-Patent-Group-Announces-Installation-of-1-360-Next-Generation-Miners-Increases-Hashrate-130-Ph-or-230.html

[3] https://cointelegraph.com/news/riot-blockchain-boosts-its-hash-rate-by-45-with-1-000-new-antminers

[4] https://news.bitcoin.com/bitcoin-miner-hut-8-to-add-275-ph-s-of-mining-capacity-with-8-3m-capital-raise/#:~:text=The%20upgrade%20will%20add%20up,107%20MW%20maximum%20operating%20capacity.

[5] https://finance.yahoo.com/news/hive-blockchain-increases-next-generation-221400621.html#:~:text=Following%20the%20installation%20of%20the,PH%2FMW%20of%20power%2C%20which
[6] https://www.globenewswire.com/news-release/2020/05/14/2033816/0/en/DMG-Energizes-20-Petahash-of-Self-Mining-and-20-Petahash-for-Hosting-Client.html

[7] https://www.coindesk.com/microstrategy-michael-saylor-never-sell-bitcoin

Institutions are Positioning to Capture the Opportunity in Bitcoin through Mining - Follow the Signal 🚀

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