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Mining, an integral part of securing the bitcoin network, requires a lot of capital to operate profitably. And now, after a brutal crypto winter and with the upcoming halving next month, many investors have turned sour on what once was an outrageously profitable
Unlike 2021's bull run, where growth-at-any-cost led to many unsustainable means of operating mining businesses, a much more prudent strategies will be required by the miners. The recent crypto winter has seen many large bankruptcies and dried up capital markets for the miners.
"Considering that the exchange order book shows 5-10 bitcoins of liquidity for every $100 price change, a sell-off of 1,000 bitcoins is highly likely to trigger a significant price drop," Bradley Park, an analyst at CryptoQuant, told CoinDesk in an interview. "Especially when
In another example of crypto using the courts to fight back against unwarranted regulatory interference, blockchain advocates stopped a U.S. statistics agency from issuing an “emergency” request for mining energy metrics. Source link
Bitcoin soared after the last halving in May 2020, and miners joined in. At the time, there weren't many large-scale miners. This time around, though, the market is crowded with many large-scale miners, who will compete for bitcoin rewards that will be cut
“They must constantly push to acquire more hashrate as well as increase the efficiency of their hashrate, acquire lower-cost energy from cheaper sources, and expand their infrastructure to house any new machines,” Gray wrote. At the same time, every other miner is also
Currently, the miners receive 6.25 BTC per block. The halving, a quadrennial event due in April, will reduce that figure to 3.125 BTC, cutting per-block revenue by 50%. To improve profitability, miners may be using their stored BTC to buy more efficient equipment
The increased selling happens as the next Bitcoin halving, a quadrennial event when the reward to miners for securing the Bitcoin blockchain is cut by half, is due in April. The halving will have an immense impact on miners' profitability, potentially pushing smaller,
“With levered upside and theoretical hedged downside, we believe bitcoin miners represent an attractive investment opportunity for equity investors looking for a way to access this long-term bitcoin adoption trade,” the authors wrote, adding that the spot ETFs could have a “substantial positive
