Bernstein, the Private Wealth Management Unit of brokerage firm Bernstein Alliance LP, reports that SEC and CFTC listed bitcoin (BTC) miners have greater advantage over unlisted miners. Bernstein explained that it is so because unlike private firms and unlisted entities trading elsewhere, publicly listed firms have easier access to financial options and funding offers.
By the way, while the SEC stands for Securities and Exchange Commission, CFTC stands for Commodity Futures Trading Commission.
What Bernstein Analysts are Saying as the Current Trend in the Capital Markets
According to Gautam Chhugani, Senior Analyst and Managing Director of the Global Digital Assets Unit at Bernstein, having the capability to raise debt/equity in the deep capital markets where the highest volumes of trades take place, gives listed BTC miners a natural advantage over non-listed U.S. miners. Such capability is important particularly in a capital intensive industry that is facing a market that shows range bound price activity only. It’s a condition also known as market consolidation, in which a long-term trend is neither continuous nor countering.
The Bernstein report further mentioned that the cryptocurrency mining industry is currently divided into companies dedicated to bitcoin mining while some are shifting into becoming artificial intelligence (AI) data centres. While Bernstein’s analysts say that both are viable business opportunities, consolidation is becoming a popular theme since scale matters.
