What does the future hold for Crypto Mining?
I have chosen RIOT as the chart, but I am looking at MARA and also BITF. But as a whole, looking at the WGMI (Valkyrie Bitcoin Miners ETF), BTC mining companies as a whole is taking a hit. Crypto itself is taking a huge hit and of course, this affects Crypto Mining. It did seem that Crypto was going to push higher as the expectations for the BTC ETF release was going to be the first part of pushing BTC to the "moon" and with the BTC halving, money would just start stacking for holders. But that didn't happen. There is a decent amount of geo political turmoil going on. Governments selling BTC. SEC doing what it can to get Crypto labeled as securities in order to bring the coins to its realm of oversight. The Yen carry trade unwinding. The potential of a recession.
But there is the other side, where there is good news going on for BTC. The possibility of BTC becoming a reserve asset. The upcoming elections, with a a lot of fingers pointing at former President Donald Trump being very pro Crypto. But even if Kamala Harris (pointed in ALTCOIN daily), says that she is in support of crypto, then that will be a good push for Crypto to move higher. There is also the FED reducing rates towards the end of September; with the recent NFP coming out lower than expected and pushing the chances for a reduction in rates for 50 basis points to 50%.
So if the self fulling prophecy for BTC hitting 100k - 150k do come true, then Crypto Miners are going to be cooking. Projects are already underway and the Crypto Market has been very resilent. There are those that thought Crypto was going to collapse during the silk road incident. Then after the cash in 2017 when BTC hit 20k. Then the Terra Luna incident. FTX collapse. Mt. Gox incident. And many others. Yet Crypto is still here.
The main issue I think is where all the money is pilling into, and during 2017, crypto was starting to hit the mainstream and a lot of coverage was on it. Institutions finally starting trading BTC and others, as well a lot of retail traders and investors were pilling in. In 2021, people were staying home, receiving check after check of stimulus, wondering were to put it. Then when things started opening up, businesses were offering sign up bonuses. Afterwards, during both these events, once Crypto hit a certain lvl, a ton of people cashed out and instantly became very rich. This money flowed into other products, such as wants and/or other ventures/markets. Now money is flowing into different meme coins, AI, FAANG-M stocks, among other things.
If BTC is able to push higher and hit the around 120k, then MARA, holding around 13,677 BTC will be worth around $1.65 billion, RIOT with a holding of around 7,250, will be around $870 million, and BITF, with holdings of around $1,016, would be around $121 million (which RIOT is attempting a takeover of BITF, offering a buyout of BITF, which BITF did not accept. If this does happen, RIOT would become a very strong competitor to MARA, pushing its exahash production from 12.6 to 19.6. MARA has an exahash of 29.9).
For the price targets, if things go accordingly, MARA will likely be able to break out of the $20 resistance, avoiding the completion of the inverse cup and handle pattern. If this pattern forms, price will likely keep pushing lower, potentially to around the $8 lvl (at least breaking the $10). For RIOT and BITF, they have the same pattern as MARA, and WGMI price is in a monthly rising channel, so there is a strong possibility that price will drop, but if things go accordingly, then prices on these companies will also avoid the acceptance of the inverse cup and handle pattern. The psychological lvls for these two companies are $10 and $2, which could be hit depending on how things go these next few months.
I am in a position on RIOT and a few on BITF, my positions are at a small loss, but I am selling covered calls and cash secured puts to offset the loss, which, when factored in, puts me at a net positive. Additionally, I am participating in the stock lending program, which is further offsetting my losses. I am on the side that price will push higher and I am willing to see it through.
Protect your inventory (your capital), and have some great trading out there.
But there is the other side, where there is good news going on for BTC. The possibility of BTC becoming a reserve asset. The upcoming elections, with a a lot of fingers pointing at former President Donald Trump being very pro Crypto. But even if Kamala Harris (pointed in ALTCOIN daily), says that she is in support of crypto, then that will be a good push for Crypto to move higher. There is also the FED reducing rates towards the end of September; with the recent NFP coming out lower than expected and pushing the chances for a reduction in rates for 50 basis points to 50%.
So if the self fulling prophecy for BTC hitting 100k - 150k do come true, then Crypto Miners are going to be cooking. Projects are already underway and the Crypto Market has been very resilent. There are those that thought Crypto was going to collapse during the silk road incident. Then after the cash in 2017 when BTC hit 20k. Then the Terra Luna incident. FTX collapse. Mt. Gox incident. And many others. Yet Crypto is still here.
The main issue I think is where all the money is pilling into, and during 2017, crypto was starting to hit the mainstream and a lot of coverage was on it. Institutions finally starting trading BTC and others, as well a lot of retail traders and investors were pilling in. In 2021, people were staying home, receiving check after check of stimulus, wondering were to put it. Then when things started opening up, businesses were offering sign up bonuses. Afterwards, during both these events, once Crypto hit a certain lvl, a ton of people cashed out and instantly became very rich. This money flowed into other products, such as wants and/or other ventures/markets. Now money is flowing into different meme coins, AI, FAANG-M stocks, among other things.
If BTC is able to push higher and hit the around 120k, then MARA, holding around 13,677 BTC will be worth around $1.65 billion, RIOT with a holding of around 7,250, will be around $870 million, and BITF, with holdings of around $1,016, would be around $121 million (which RIOT is attempting a takeover of BITF, offering a buyout of BITF, which BITF did not accept. If this does happen, RIOT would become a very strong competitor to MARA, pushing its exahash production from 12.6 to 19.6. MARA has an exahash of 29.9).
For the price targets, if things go accordingly, MARA will likely be able to break out of the $20 resistance, avoiding the completion of the inverse cup and handle pattern. If this pattern forms, price will likely keep pushing lower, potentially to around the $8 lvl (at least breaking the $10). For RIOT and BITF, they have the same pattern as MARA, and WGMI price is in a monthly rising channel, so there is a strong possibility that price will drop, but if things go accordingly, then prices on these companies will also avoid the acceptance of the inverse cup and handle pattern. The psychological lvls for these two companies are $10 and $2, which could be hit depending on how things go these next few months.
I am in a position on RIOT and a few on BITF, my positions are at a small loss, but I am selling covered calls and cash secured puts to offset the loss, which, when factored in, puts me at a net positive. Additionally, I am participating in the stock lending program, which is further offsetting my losses. I am on the side that price will push higher and I am willing to see it through.
Protect your inventory (your capital), and have some great trading out there.
Note
Thanks for the engagement below. I think the Crypto Mining space (if it eventually pushes into the realms of the FAANG-M stocks and maybe, just maybe, replaces one of them) will eventually end up like these other industries and end up eating each other, until there is perhaps just a few of them left. There is a cup full of BTC Miners out there (some also mining ETH), but what's noticeable about some of these miners is who in invested in them. A huge player in this is the investment Company Blackrock, boasting AUM at 10 trillion. There have a sizeable chuck of shares in RIOT (10.8 million shares), MARA (10.9 million shares), CIFR (2.2 million shares), WULF (4.8 million shares), and also shares in Hut 8 (Vanguard also has positions in RIOT and MARA). According to an article I read, Blackrock is also a member of the Bitcoin Mining Council, which is a group of lobbist that represent BTC mining in the US. With these massive institutions pushing BTC ETFs and also getting into the Crypto mining space, something is taking place.
For RIOT, could it hit $80, that is a huge feat from where it is right now. But could it push higher and maybe to the $20/$30 lvl and then another company offer a $40 to $50 a share buyout, seems plausible. If there is more BTC acceptance and the landscape for Crypto becomes less combative with governments embracing Crypto more then it is now, us moving further along to reaching a type 1 civilization, AI and Crypto merge (AI firms are looking at Crypto Mining computing power and power suppliers), it could look different in the next few years to 10 years, with again, the companies becoming acquired and merged into a bigger or new one.
Note
Crypto mining is still working to push higher as BTC fights to stay above the 60k lvl. MARA is struggling and bouncing above and below the 16 lvl (thought it pushed above the 17 lvl last week). There is also a litigation happening in Hood, Texas on residents pushing up complaints about the noise from the mining center. For RIOT and BITF, a settlement was reached which helped out both companies. BITF pushed a little higher (though currently price dropped below the $2 lvl), but RIOT, pushed above $8 (briefly pushing back below the $8 lvl).
I am thinking price has a chance to push higher and will push higher as the Crypto Market pushes higher. Just like streaming, online shopping, iPhones, and other products pushed the FANNG-M stocks to be the leaders in equities market, I am thinking that Crypto will eventually take a place amongst them (same with robotics, space, and others). It looks like the future with either be mergers or combined efforts between Crypto and AI that could push Crypto and Crypto Mining to new heights.
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