There’s a new player in the Bitcoin mining space, and it’s likely not someone you would’ve guessed.

Deutsche Telekom, the parent company of T-Mobile (the 3rd largest wireless carrier in the United States), is joining the fray.

During the BTC Prague conference in mid-June, Dirk Röder, Head of web3 infrastructure and solutions of T-Mobile’s Telekom MMS, excitedly shared “I would like to let you in on a little secret: we will engage in ‘digital monetary photosynthesis’ soon.” When pressed by the conference host and asked if T-Mobile is mining Bitcoin, he answered, “We will.”

Röder confirmed that Deutsche Telekom has been running a Bitcoin node and Lightning nodes since 2023.

The timing of this announcement is interesting, given that the latest Bitcoin halving took place in mid-April. As we detailed in a prior article, the significance of the halving is that the Bitcoin protocol cuts the number of bitcoins awarded to successful miners in half. The most recent halving reduced the reward for miners from 6.25 to 3.125 bitcoins.

While Röder didn’t expand upon the details (like where the mining will occur or the intensity of the operation), the implications of such a large corporation entering the space are currently unknown.

One potential positive for the mining community is the thought that it could strengthen the network and make it safer. On the other hand, a large player entering the space could ramp up competition and push out some of the smaller players already in the space.

Deutsche Telekom has previously been very active in the digital asset space, running validators on networks such as Polygon, Q, Flow, Celo, Chainlink and Ethereum for years. They also started the Energy Web Chain in 2023, which is described as “the world’s first public blockchain designed explicitly for the energy sector” that will assist in creating a “more decentralized, digitalized, and decarbonized energy system.”

Will more massive corporations dip their toes into Bitcoin mining? That remains to be seen.

Alex’s Take

The saying in the Bitcoin community is that “everyone buys Bitcoin at the price they deserve.”

Translation: if you don’t take the time to research Bitcoin today, you’re likely missing an opportunity to buy it at a lower price than you eventually will in the future.

This is another “Bitcoin game theory” example that won’t register on the radar of most investors. While most people are not paying attention, heavy hitters are making major investments into the Bitcoin and blockchain spaces.

PLEASE take some time to start educating yourself on the topic. It is likely to become more prevalent as time goes on.

Interested in Learning More About the Digital Asset Space?

At Crossover Capital, our number one goal is to provide people with the support, knowledge, and access to make informed decisions about their financial futures. Building a foundation for success starts with steady support and a customized approach. Crossover Capital is here to provide the necessary tools we believe are required for growth and to be a champion for our clients’ success.

If you want to receive tools, knowledge, and digital asset insights delivered directly to your inbox once a month, subscribe here.

Investment advisory services offered through Crossover Capital Brands, LLC (dba Crossover Capital), a Registered Investment Advisor with the U.S. Securities and Exchange Commission.

This material is intended for informational purposes only. It should not be construed as legal or tax advice, and is not intended to replace the advice of a qualified attorney or tax advisor. This information is not an offer or a solicitation to buy or sell securities. The information contained may have been compiled from third party sources, and is believed to be reliable.

Alternative investments – such as hedge funds and private equity/venture capital funds – are speculative and involve a high degree of risk. Likewise, the emergence of digital assets comes with its own speculative characteristics and involves a high degree of risk. Various digital assets have unique features, and the regulatory risk environment continues to change as governance requirements, rules, and lawsuits emerge. There may be material differences in the type of marketplaces available for digital assets, and there could be significant restrictions or limitations on withdrawing from or transferring these types of investments. Digital assets may incur higher fees when compared to traditional assets, and these expenses may offset returns.

Crossover Capital may not be able to independently verify digital asset valuations provided by institutions that hold or offer digital asset services. As a result, Crossover Capital will generally rely on information reported to it by third parties. As such, the information contained herein is for informational purposes. Clients should recognize that they may bear digital asset-based fees and expenses at the manager-level, as well as indirect fees, expenses, and performance-based compensation for digital assets. Spot bitcoin exchange-traded products were recently approved for listing and trading by the SEC. However, such approvals do not indicate SEC approval to use or invest in bitcoin. Clients should remain cautious and aware of the various risks associated with digital assets that have a value tied to bitcoin or other crypto related products.