The top five Bitcoin mining firms aren’t offloading their Bitcoins, even though a significant reduction by half in the new Bitcoin supply is upcoming.
Based on a Bitwise report from April 10, 2024, the leading five Bitcoin mining firms collectively offloaded approximately 2,000 Bitcoins – the smallest amount in the past two years.
In the opening three months of 2022, the leading five Bitcoin miners saw their sales fall below the 2,000 Bitcoin mark for the last time. This information was disclosed right before the anticipated Bitcoin halving in 2024. Post-halving, mining companies could experience decreased income due to the continuous increase in Bitcoin’s hash rate.
Bitcoin miner income experienced a significant surge, growing approximately 30% between successive quarters. This marks a notable improvement, more than tripling the revenue lows recorded during the last quarter of 2022. However, despite this uptick, some mining operations face a discouraging outlook. Based on Bitwise’s data, Bitcoin miners amassed over $4.5 billion in earnings.
Based on the statement made by Laurent Benayoun, CEO of Acheron Trading, it’s not immediately clear that miners will suffer financially following the halving event. Instead, there’s a strong possibility that they could even benefit due to an anticipated rise in network fees.
After Bitcoin undergoes a halving event, the income earned by miners tends to decline. For instance, the month right after the 2020 Bitcoin halving witnessed a 40% decrease in mining revenue, while the month following the 2016 Bitcoin halving experienced a 51% reduction in earnings.
In Q1 2024, Marathon Digital led the top five mining companies in producing approximately 2,500 Bitcoin, marking a decline from the 4,000 Bitcoin they generated in Q4 2023.
Despite earning an average of $8,626 for each Bitcoin mined during the first quarter of the year, Cipher Mining incurred significantly lower costs compared to Marathon Digital’s average mining expenses of $22,249 per Bitcoin. However, by the first quarter of 2024, the price of Bitcoin had surged to an average of $53,534.
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2024-04-17 19:16