Bitcoin Rally Tests Miner Conviction as Institutions Boost Holdings and Plan Stablecoin Venture

Crypto’s August rally put corporate conviction to the test. Bitcoin (BTC) miners that spent much of the crypto downturn courting AI investors are once again trading like leveraged bets on BTC, while Strategy and Strive are adding thousands more Bitcoin to their balance sheets.

The same concentration is playing out elsewhere. Bitmine is closing in on owning 5% of Ether’s (ETH) circulating supply despite billions in unrealized losses, while 21 major financial institutions are taking a different approach by developing stablecoins for payments and settlement.

Bitcoin rally puts miners back in the spotlight

Bitcoin’s August rally lifted beaten-down mining stocks by as much as 67%, reversing a trend that had favored miners pivoting to AI and underscoring the sector’s continued sensitivity to BTC market conditions.

BlocksBridge Consulting reported in a recent newsletter that Bitcoin’s roughly 23% rally in late August outpaced most AI-linked infrastructure stocks. Canaan, American Bitcoin and Cango gained between 41% and 67%, compared with about 21% for CoreWeave, 17% for Nebius and 15% for IREN. Meanwhile, some miners with greater exposure to AI and high-performance computing were flat or declined.

BlocksBridge cited three catalysts for the rally: an expansion of US Treasury liquidity-supporting buybacks, renewed regulatory optimism following a White House crypto meeting and a sharp short squeeze that liquidated more than $1.6 billion in positions.

The outperformance suggests investors may once again be rewarding direct Bitcoin exposure, although the sector still faces risks from the high costs of building out AI data-center capacity.

Strive, Strategy add to Bitcoin holdings as BTC rallies

Strive and Strategy added billions of dollars’ worth of Bitcoin to their corporate treasuries in the final week of August, with Strive buying 1,800 BTC for approximately $143 million and Strategy acquiring another 4,603 BTC.

Strive’s purchases between Aug. 24 and Aug. 28 lifted its holdings to 23,156 BTC, making it the fifth-largest publicly traded corporate Bitcoin holder. The company paid an average of $79,431 per BTC, including fees and expenses, after buying 1,110 BTC the prior week at an average price of $73,409.

Strategy, meanwhile, resumed buying, acquiring 4,603 BTC at an average price of $80,318 and lifting its holdings above 845,000 BTC after four sales since May.

The purchases coincided with a broader digital asset recovery that began Aug. 19, after the US Treasury announced plans to double certain long-term bond buybacks.

21 financial institutions plan a G7 stablecoin venture for 2027

A consortium of 21 major financial institutions, including Bank of America, Goldman Sachs and Citi, plans to establish a new company to develop and issue stablecoins, marking another sign of traditional finance’s push into digital dollars as regulatory frameworks take shape.

The group intends to launch a US dollar-denominated stablecoin in the first half of 2027 before expanding to other G7 currencies, with a euro offering next. The stablecoin will target wholesale, institutional and retail markets for cross-border payments and digital asset settlement.

The venture builds on an initiative announced last October by 10 banks exploring a 1:1 reserve-backed digital money on public blockchains. The consortium now spans North America, Europe, East Asia, the Middle East and Africa, and intends to comply with both the US GENIUS Act and the EU’s MiCA regulation.

Bitmine nears 5% of Ether supply after 65-week buying streak

Bitmine has extended its Ether buying streak to 65 consecutive weeks, adding 53,501 ETH last week as a broader crypto market recovery lifted the value of its digital asset portfolio.

The latest purchase brought Bitmain’s holdings to more than 5.9 million ETH, valued at roughly $14.8 billion based on an Ether price of $2,511 as of Sunday. The company now owns 4.9% of Ethereum’s 120.7 million circulating supply, putting it within striking distance of its stated 5% goal.

Bitmine chairman Tom Lee said Ether, Bitcoin and Solana have been the three best-performing major assets since June 30, with ETH leading gains.

“We believe this sets the stage for institutions to add to their crypto holdings given the substantial outperformance versus other macro assets,” Lee said.

Despite the accumulation, Bitmine is sitting on roughly $5.1 billion in unrealized losses on its Ether holdings, according to DropsTab data, reflecting sustained buying through the downturn that began in late 2022.

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