Strive Raked in $500 Million in Q3, but Mining Peers’ Numbers Looked Less Rosy
Strive netted $509 million in the third quarter this year, with revenue up 74.7%. This was mainly driven by unrealized gains on its Bitcoin holdings—it had $534 million in paper profits. Combined with its business following the acquisition of medical device maker Semler Scientific, the company’s results were certainly impressive. But updates from mining hardware manufacturers BitFuFu and Bitdeer paint a less rosy picture of the mining industry. Strive’s success looks more like an exception, showing that crypto companies with cash flow can make money, while Bitcoin mining is still struggling with price volatility.
Market impact
- Short term: Strive’s earnings could draw more traditional capital to crypto companies, but they won’t directly push Bitcoin higher. Strive’s profits are on paper; Bitcoin needs actual buying demand to support its price.
- Medium term: Diverging mining data suggests Bitcoin’s price could come under pressure. If miners’ costs remain high while Bitcoin’s price stays weak, the risk of mining operations cutting production increases, which could limit Bitcoin’s downside. But the success of holding companies like Strive is more likely to spur the development of alternatives such as Ethereum, since they don’t need rising prices to sustain their ecosystems.
My take
Strive’s case shows that institutions holding Bitcoin can make a lot of money, but that doesn’t mean Bitcoin is about to rise. The key is whether Bitcoin can hold above $70K in the coming months. If mining operations continue to lose money, Bitcoin is likely to test support around $65K. Don’t come down too hard on me if I’m wrong—I’m only testing the waters with a small position myself.
Final thoughts
Strive’s success is an exception, but the problems in mining are more cause for concern. What do you think? Which side are you on this time?
$BTC $ETH #BTC #ETH
⚠️ This is not investment advice
Strive netted $509 million in the third quarter this year, with revenue up 74.7%. This was mainly driven by unrealized gains on its Bitcoin holdings—it had $534 million in paper profits. Combined with its business following the acquisition of medical device maker Semler Scientific, the company’s results were certainly impressive. But updates from mining hardware manufacturers BitFuFu and Bitdeer paint a less rosy picture of the mining industry. Strive’s success looks more like an exception, showing that crypto companies with cash flow can make money, while Bitcoin mining is still struggling with price volatility.
Market impact
- Short term: Strive’s earnings could draw more traditional capital to crypto companies, but they won’t directly push Bitcoin higher. Strive’s profits are on paper; Bitcoin needs actual buying demand to support its price.
- Medium term: Diverging mining data suggests Bitcoin’s price could come under pressure. If miners’ costs remain high while Bitcoin’s price stays weak, the risk of mining operations cutting production increases, which could limit Bitcoin’s downside. But the success of holding companies like Strive is more likely to spur the development of alternatives such as Ethereum, since they don’t need rising prices to sustain their ecosystems.
My take
Strive’s case shows that institutions holding Bitcoin can make a lot of money, but that doesn’t mean Bitcoin is about to rise. The key is whether Bitcoin can hold above $70K in the coming months. If mining operations continue to lose money, Bitcoin is likely to test support around $65K. Don’t come down too hard on me if I’m wrong—I’m only testing the waters with a small position myself.
Final thoughts
Strive’s success is an exception, but the problems in mining are more cause for concern. What do you think? Which side are you on this time?
$BTC $ETH #BTC #ETH
⚠️ This is not investment advice
