Marathon mined 717 BTC and Riot mined about 505 BTC. Despite their production gains, both companies saw stock dips on Nov. 4. Meanwhile, Semler Scientific plans to continue its Bitcoin accumulation, and holds 1,058 BTC as part of its long-term strategy. Semler is now the 17th largest BTC holder. Meanwhile, UK pension firm Cartwright and Michigan’s State Retirement System expanded their crypto exposure with new Bitcoin and Ethereum allocations, proving that there is growing institutional interest in digital assets as part of long-term investment strategies.
Marathon and Riot Report Strongest Month Since Halving
Marathon Digital and Riot Platforms, which are two of Bitcoin's leading mining companies, reported their highest monthly Bitcoin production since the April halving event. Marathon mined 717 Bitcoin in October, valued at close to $48.8 million. The firm attributed this partly to a 14% boost in its hashrate that now exceeds 40 exahashes per second.
Marathon’s CEO Fred Thiel shared that October’s elevated transaction fees also contributed to an increased Bitcoin output as transaction fees accounted for about 5% of the firm’s total Bitcoin production. Marathon’s mining pool, MARAPool, and its private mempool, Slipstream, were instrumental in securing $400,000 worth of Bitcoin from two high-fee transactions. Despite the milestone, Marathon still recorded a slight 3% drop in block wins, which could be due to an increase in network difficulty.
Operational highlights (Source: MARA)
The strong production results suggest that major players in the Bitcoin mining space are starting to stabilize again after April’s halving. The halving saw the Bitcoin block subsidy cut in half from 6.25 BTC to 3.125 BTC, which drastically reduced miner earnings.
Riot Platforms also recorded impressive production as it mined 505 Bitcoin in October, worth around $34.4 million. This was a 22.6% increase from September. Riot attributed this uptick to an increase in its hashrate to 29.4 EH/s, up from 28.2 EH/s the previous month. The hashrate increase was likely driven by the installation of new MicroBT miners at its Corsicana facility.
Despite these production gains, both companies saw their share prices dip on Nov. 4. Marathon’s stock (MARA) dropped 3.79% and Riot’s (RIOT) fell by 4.87%, according to Google Finance data. Still, Marathon and Riot are still very focused on reaching their hashrate expansion goals.
Riot Platforms estimated hashrate growth (Source: Riot)
Riot plans to reach a hashrate of 34.9 EH/s by the end of 2024, and also has an ambitious long-term target of 100 EH/s by 2027. Meanwhile, Marathon is on track to meet its goal of achieving a 50 EH/s hashrate by 2025, despite facing slight setbacks due to the slower-than-expected growth at its recently acquired Kentucky facilities.
Semler Continues Bitcoin Accumulation
Meanwhile, Semler Scientific plans to continue its strategy of accumulating Bitcoin after a strong third-quarter performance in which it added another $2.6 million worth of Bitcoin to its reserves. On Nov. 4, the company reported holding 1,058 Bitcoin, valued at about $72 million at current prices.
Over the third quarter, Semler spent $8.4 million to buy 141 Bitcoin, and since then, it bought an additional 40 Bitcoin for $2.6 million. This accumulation places Semler as the 17th-largest Bitcoin holder among publicly traded companies. Semler even surpassed Japan’s Metaplanet, which holds 1,018.17 BTC.
CEO Doug Murphy-Chutorian shared that the company is committed to keeping Bitcoin as part of its long-term strategy. He also stated that they are focused on both expanding their Bitcoin holdings and supporting growth in their healthcare business. Semler’s chairman, Eric Semler, added that they will continue buying Bitcoin using cash from operations and proceeds from their ATM program. Additional financing options are also being explored to increase Bitcoin acquisitions even more.
Semler Scientific stock price (Source: Google Finance)
After this announcement, Semler’s stock saw a 3.44% uptick in after-hours trading on Nov. 4, which allowed it to close at $31 after a 2.31% dip during the day. Despite this recent rise, the stock remains down by 32.16% year-to-date. Semler's Q3 financials showed mixed results compared to the previous year, with revenue down 17% to $13.5 million. Net income rose by 2% to $5.6 million.
UK Pension Scheme Takes Bitcoin Leap
United Kingdom-based pension specialist Cartwright announced that an unnamed pension scheme recently allocated 3% of its fund to Bitcoin. This allocation is one of the more notable moves by UK pension funds into cryptocurrency. Steve Robinson, who is Cartwright's head of investment implementation, explained that the allocation will support a reduced reliance on employer contributions. Some of the details on the pension scheme were not shared just yet, and Cartwright did not respond to media inquiries for more information.
Cartwright’s move adds to the growing trend of pension funds globally exploring crypto investments. In 2024, multiple pension funds in local and federal governments moved towards crypto.
In the UK, major firm Legal & General stated in October that it was considering tokenized funds. Meanwhile, South Korea’s pension service reported a $34 million exposure to MicroStrategy, which is a company with very large Bitcoin investments. The State of Michigan Retirement System also shows a similar interest.
The UK’s recent political shift to a Labour government raised some questions about the nation’s stance on digital asset regulation. Although the government has been very slow to prioritize crypto regulation, it released its first proposed budget in November. The Financial Conduct Authority is still responsible for oversight and enforcing actions against crypto firms when necessary.
Michigan State Retirement Fund Increases Crypto Holdings
The State of Michigan Retirement System increased its exposure to crypto by adding shares of Ethereum-focused ETFs, according to a recent filing with the United States Securities and Exchange Commission (SEC). On Sept. 30, Michigan’s pension fund disclosed holding 460,000 shares each of the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust, complementing its previously reported stake in the ARK 21Shares Bitcoin ETF.
The value of Michigan’s combined Bitcoin and Ethereum holdings now stands at roughly $18 million if the shares remain unchanged. The value of its 110,000 ARK 21Shares Bitcoin ETF shares rose by about $1 million since June 30.
The ARK 21Shares Bitcoin ETF was among the first spot Bitcoin ETFs approved by the SEC, and started trading on U.S. exchanges in January. The SEC later approved spot Ethereum ETFs in May.
The trend of incorporating crypto investments into pension funds has grown a lot in 2024, with both U.S. and international government entities exploring these assets. Florida officials even advocated for the inclusion of Bitcoin in state retirement funds. This growing adoption of digital assets by pension funds certainly proves that there is an increasing institutional interest in crypto as part of long-term investment strategies.
