Banks Want to Buy BTC from Miners, Indicating Supply Shortage, Says Hut8 Mining CEO

Recent institutional interest in Bitcoin and the Spot ETFs—led by Larry Fink and his iShares IIBIT—seems to have triggered increased demand for the leading cryptocurrency.

Related: Market Analyst Pav Hundal Says Fundamentals Haven’t Changed in Recent Market Update

Hut 8, one of the largest Bitcoin miners, has revealed that major banks are now directly contacting miners to buy BTC, as DL News reports.

According to the publication, the CEO of Hut 8, Asher Genoot, said that some of the largest banks had been in contact to buy some of the company’s BTC holdings and were also interested in mining operations and capacity.

We’ve had banks reach out to us to try to buy our Bitcoin because of the supply shortages on these different exchanges.

Asher Genoot, CEO of Hut 8

Hut 8 Merges With US Bitcoin Corp, Holds Over 9,100 BTC

Hut 8 has recently undergone significant changes through a merger, leading to its re-domiciliation and establishment in the United States, specifically based out of Miami. This strategic move was the result of a merger between US Bitcoin Corp, a company co-founded by Genoot, and Hut 8 Mining Corp to form Hut 8 Corp.

A crucial aspect of this merger was the aim to strengthen the company’s financial foundation, which is evidenced by its possession of over 9,100 Bitcoin, valued at approximately US$600 million (AU$910 million).

In an interview with Bloomberg Crypto, Genoot said this considerable holding underscores Hut 8’s robust balance sheet and its substantial stake in the cryptocurrency market, highlighting its commitment to growth and stability in the industry.

Genoot believes that for miners to succeed, they must keep costs down.

You just have to be a low-cost operator — as long as you’re a low-cost operator, when the markets run, you’re able to reap the rewards and be highly profitable. And when the markets compress post-halving, you’re able to manage through the halving and consolidate.

Asher Genoot, CEO of Hut 8

The Bitcoin halving, occurring approximately every four years, reduces the new supply of coins, aligning with creator Satoshi Nakamoto’s vision to limit Bitcoin availability gradually.

Read more: What is Bitcoin Halving? Here is Everything You Need to Know

This event is significant for the market as it typically leads to a price increase due to reduced miner sales and constant or rising demand. Past halvings have resulted in subsequent price surges, and the upcoming fourth halving on April 20 is expected to have a notable impact on both Bitcoin miners and the overall cryptocurrency market.