{"id":10227,"date":"2022-04-06T18:35:12","date_gmt":"2022-04-06T18:35:12","guid":{"rendered":"http:\/\/ci029e062b70002674"},"modified":"2022-04-06T18:35:12","modified_gmt":"2022-04-06T18:35:12","slug":"the-financialization-of-bitcoin-mining","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/industry-events\/the-financialization-of-bitcoin-mining","title":{"rendered":"The Financialization Of Bitcoin Mining"},"content":{"rendered":"
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This year at Bitcoin 2022, mining took a spotlight. At the Mining Stage and Lounge, great conversations were had about the future of the industry. Mining is an incredibly important part of Bitcoin \u2014 it\u2019s how new coins are created and distributed. Bitcoin mining has transitioned from the basements and backyards of dedicated Bitcoiners to massive ASIC farms operated by large corporations. As Bitcoin scales to become a globally used network, the incentive structure for bitcoin mining<\/a> lends itself to increasingly large corporate structures related to mining. This leads to changes in the way that miners are valued and financed.<\/p>\n

The conversation moved on stage for \u201cThe Financialization Of Bitcoin Mining,\u201d a panel featuring Leo Zhang, founder of Annica Research; COO of Luxor Ethan Vera; Zachary Cefaratti, founder of Dalma Capital; Vice President of Mining at Galaxy Digital Brian Wright; and Jurica Bulovic, head of mining at Foundry.<\/p>\n

A powerhouse gathering of industry leaders to be sure, with some excellent insights. <\/p>\n

On the current state of the market, Cefaratti said, \u201cI think the industry is still misunderstood by the capital markets.\u201d <\/p>\n

Indeed, in reference to the pricing of public miners, Vera stated, \u201cThere’s quite a bit of disconnect between what you can purchase an ASIC for and what you can get valued for in public markets.\u201d <\/p>\n

In regards to how he measures things, Zhang pointed to, \u201csize of deployment, and capital efficiency of these tools.\u201d <\/p>\n

One popular topic was financial instruments based on hash rate, with Bulovic stating, \u201cDebt as a product is very attractive to miners \u2026 because they can use mining machines as collateral then use the income from those machines to repay the loan.\u201d<\/p>\n

Vera stated, “My view on hash rate based instruments are that they\u2019re incredibly needed by the market.\u201d <\/p>\n

But it wasn\u2019t entirely agreed upon, with Ceferatti saying, \u201dI wouldn\u2019t bet the farm on an off-take deal.\u201d<\/p>\n

Cefaratti also stated, \u201cOne thing that does worry me about the capital markets and the future \u2026 is that a lot of miners have over-promised.\u201d<\/p>\n

But Zhang wasn\u2019t so worried. He said, \u201c… in several years, [Bitcoin-native DeFi] will be more important than the equity and debt we\u2019re discussing here.\u201d <\/p>\n

Bitcoin 2022 is part of the Bitcoin Event Series hosted by BTC Inc, the parent company of Bitcoin Magazine.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin mining is increasingly done on a large scale by corporations which operate very differently compared to small miners.<\/p>\n","protected":false},"author":2730,"featured_media":10228,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[2016,97,93],"class_list":{"0":"post-10227","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-industry-events","8":"tag-bitcoin-2022","9":"tag-mining","10":"tag-news"},"author_data":{"id":2730,"name":"BtcCasey","nicename":"casey","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/02\/jn_tjlo_400x400.jpg"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/img_4496jpeg.png","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/10227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2730"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=10227"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/10227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/10228"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=10227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=10227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=10227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}