Crypto Miner Hut 8 Bucks Trend by Holding on to its Mined Bitcoins
Hut 8, one of the world’s largest cryptocurrency mining companies, is bucking the trend by holding onto the majority of the bitcoins it mines.
While most miners immediately sell their haul for fiat currency in order to cover operational costs and turn a profit, Hut 8 has been storing its mined bitcoins in long-term holdings, or what is commonly referred to as ‘hodling.’
The decision to hodl rather than sell is a relatively new phenomenon in the world of cryptocurrency mining. It’s made possible by Hut 8′s unique position as both a miner and operator of large-scale mining facilities. By hodling its mined bitcoins, Hut 8 is able to hedge against the volatility of cryptocurrency markets and maintain a stable revenue stream.
The company has also been able to use its hodled bitcoins as collateral for additional financing, which has allowed it to expand its operations and increase its hashrate.
The hut’s miners’ output has been consistent over the past few months, averaging around 10 bitcoins per day. All of the bitcoins mined are placed into custody, in accordance with the hut’s “HODL” strategy. This means that the bitcoins are not spent, but rather held onto in order to increase their value over time.
The hut has been operational for some time now and has seen great success. In addition to its stable mining operations, the hut also offers bitcoin storage and management services to its clients. This is a valuable service for those who do not want to worry about losing or misplacing their bitcoins.
So far, Hut 8′s bet on hodling seems to be paying off. The company is on track to become one of the most profitable Bitcoin miners despite bearish market conditions.
What does it mean to HODL?
The term “HODL” is derived from a misspelling of the word “hold” that occurred in a now-famous post on the Bitcoin Forum back in 2013. The original poster, which went by the name GameKyuubi, was responding to the volatile price movements in the early days of Bitcoin and urged other investors to simply hold onto their BTC rather than sell it off in a panic.
Since then, “HODL” has become something of a rallying cry for the cryptocurrency community, embodying the long-term outlook and patience that is often required when investing in digital assets.
So, whether you’re holding Bitcoin, Ethereum, Litecoin, or any other cryptocurrency, remember to HODL!
What you should know about the HODL Strategy
The HODL strategy is a long-term investment strategy where you “hold on for dear life” and don’t sell your crypto even when the prices are crashing. This strategy is based on the belief that the cryptocurrency market is still in its early stages of development and will eventually recover from any short-term price crashes.
One of the main advantages of following the HODL strategy is that it can help you avoid making emotion-based decisions that could hurt your investment portfolio in the long run. For example, if you sell your crypto when prices are crashing, you might miss out on the eventual rebound. By holding onto your assets during a crash, you give them a chance to recover their value over time.
Of course, there are also risks associated with the HODL strategy. For instance, if a particular cryptocurrency never recovers from a major crash, then you could end up losing all of your investment. Additionally, holding onto assets during a crash can be psychologically difficult since it goes against our natural instinct to cut our losses when things are going downhill.
Overall, whether or not the HODL strategy is right for you depends on your individual risk tolerance and investment goals. If you’re comfortable with holding onto assets during periods of volatility and have a long-time horizon for your investments, then HODLing may be a good option for you. However, if you’re worried about short-term price movements or tend to panic when markets are crashing, then this strategy might not be ideal.