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[The Share Prices Of MARA And Riot, Two Major Mining Companies That Choose To Hold Bitcoin, Have Fallen 20% And 36% This Year, Respectively] Six Months After The Bitcoin Halving Event, Crypto Miners Are Choosing Between Two Different Paths To Stay Alive. Listed Mining Companies Including MARA Holdings, Riot Platforms And CleanSpark Are Retaining The Bitcoin They Produce, Expecting It To Appreciate. At The Same Time, More And More Companies Are Investing More In Developing Data Centers To Power Artificial Intelligence Applications. "With Profit Margins Being Greatly Compressed, One Of The Few Strategies For Miners To Retain Investors Is To Hold The Bitcoin They Produce, Betting On Future Price Appreciation While Relying On Equity Or Debt Financing," Said Wolfie Zhao, An Analyst At Research Firm TheMinerMag. By Avoiding Selling Bitcoin At An Immediate Loss, They Can Avoid Potential Losses And Prepare For Gains When A Bull Market Emerges. "The Share Prices Of MARA And Riot, The Two Largest Listed Bitcoin Miners, Have Fallen 20% And 36% This Year, Respectively, And Both Companies Are "hodlers." In Addition, Core Scientific's Stock Price Has Risen Nearly Fourfold Since It Announced In January That It Had Signed A Series Of Multi-billion-dollar Contracts With AI Upstart CoreWeave. The Miner Will Transform Some Of Its Data Centers To Accommodate GPUs That Can Generate High-performance Computing Power For AI Applications. TeraWulf, Whose Stock Price Has More Than Doubled This Year, Is Also Developing The AI Data Center Field. Other Bitcoin Miners That Are Investing More Resources In Artificial Intelligence, Such As Iris Energy And Bit Digital, Tend To Outperform Some Of Their Peers Who Are Doubling Down On Their Holdings. "Our View Is That Pure Play Bitcoin Mining Currently Has A Place In The Market Because It Creates Economic Value From The Growing Bitcoin Mining Capacity," Said Paul Golding, Senior Analyst At Macquarie Capital USA. He Has "outperform" Ratings On MARA, Riot, Core Scientific, Iris Energy, CleanSpark And Cipher Mining. Luxor Technology COO Ethan Vera Said: "In An Environment Where Bitcoin Prices Are Rising, This Will Be A Very Successful Strategy, But If Bitcoin Prices Plummet, It Will Be A Disaster And You Will Continue To See Negative Profits. They Are Covering Up The Poor State Of The Industry And The State Of Operations By Diluting Shareholder Equity And Purchasing New Mining Machines." (Bloomberg)
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