Share this article
Bitcoin Miners Are in M&A Mode: Architect Partners
Miners want to secure large data center capacity with access to low cost power and capital, the report said.
Updated Aug 27, 2024, 3:14 p.m. Published Aug 27, 2024, 12:06 p.m.
Make us preferred on Google
- The bitcoin mining sector is in the middle of a wave of M&A, the report said.
- Architect Partners said miners want to secure large data center capacity with access to low cost power and capital.
- The effect of miner concentration is yet to be seen, the note said.
The bitcoin mining sector is in the middle of a consolidation phase which was triggered by the recent halving in April, investment bank Architect Partners said in a report on Sunday.
"The strategic driver is to secure large and scalable data center capacity with access to low cost power and capital, all made easier as a company gets larger," managing partner Eric Risley and analyst Arjun Mehra wrote.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Bitfarms' (BITF) planned acquisition of Stronghold Digital Mining (SDIG) is evidence of this recent M&A trend.
The deal is noteworthy as Bitfarms was subject to an unsolicited takeover offer from rival miner Riot Platforms (RIOT) in May, and Riot has since bought 19% of Bitfarms' stock in the open market, agitated to replace management, and fought a proxy battle to replace two board members, the report said.
"Sometimes the best defense is offense," the authors wrote, adding that Bitfarms has subsequently announced the acquisition of Stronghold together with management and board changes.
Still, hostile M&A can be tricky, the report cautioned, and such deals are unusual in technology and financial services business which rely on the talent of people. "However, bitcoin mining is very different where physical facilities with access to electricity and widely available computing equipment are the core assets."
Architect Partners said the current consolidation phase is ironic as the bitcoin creator Satoshi Nakamoto's original vision was that anyone could set up a computer to mine the cryptocurrency, that everyone could run the network, and that no one would control a large amount of the hashrate. Hashrate is a proxy for competition in the industry and mining difficulty.
The effects of concentration in the mining sector are yet to be seen, but some like Jack Dorsey and the Block (SQ), the company he founded, are attempting to reverse this trend by "building semiconductors and systems to support a return to mining decentralization," the report added.
Read more: Private Equity Giants Are Circling Bitcoin Miners on AI Allure
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How the ultra-wealthy are using bitcoin to fund their yacht upgrades and Cannes trips
Cometh founder Jerome de Tychey is applying DeFi lending and borrowing on platforms like Aave, Morpho, and Uniswap to structures that help the ultra-wealthy secure loans against their massive crypto fortunes.
What to know:
- Wealthy investors who hold much of their fortune in crypto are increasingly turning to decentralized finance platforms to secure flexible credit lines without selling their digital assets.
- Firms like Cometh help family offices and other rich clients navigate complex DeFi tools, using assets such as bitcoin, ether and stablecoins to replicate traditional Lombard-style collateralized loans.
- DeFi loans can be faster and more anonymous than traditional bank credit but carry volatility and liquidation risks, and Cometh is also experimenting with applying DeFi strategies to traditional securities via ISIN-based tokenization.
Top Stories
