Bitcoin Mining Companies Prepare for Potential Demand Increase in 2024
After a successful year in 2023, the artificial intelligence (AI) industry is poised for even more gains in 2024. With the AI space projected to be worth over $200 billion, investors are looking for the best AI stock picks for the new year.
Shares of bitcoin mining operators, such as Riot Blockchain and Marathon Digital Holdings, have recently seen a decline in stock prices. This comes after major gains earlier in the year, fueled by the pending approval of a spot bitcoin ETF by the Securities and Exchange Commission (SEC).
Yahoo Finance Crypto Reporter David Hollerith discusses Riot and Marathon’s plans to expand their crypto mining operations in 2024, as well as Cathie Wood’s recent sale of ARK Invest’s remaining Grayscale shares. It’s important to note that these companies have outperformed not just bitcoin, but also other digital asset companies in 2023.
This trend is due to the fact that mining for bitcoin is an energy-intensive process that requires specialized computers. As the demand for bitcoin increases, miners are expanding their operations to boost production. This is in anticipation of the potential approval of the spot bitcoin ETF, which could lead to even more demand for the cryptocurrency.
According to experts, the potential approval of the ETF is still pending, but many firms on Wall Street are eagerly awaiting the decision. This anticipation has led to investments in the technology needed to support the potential increase in demand. Marathon Digital and Riot are among the companies making these investments, positioning themselves for success if and when the ETF is approved.
