The five biggest Bitcoin mining companies are not selling the cryptocurrency despite the impending 50% drop in the amount of Bitcoin that will be issued.
According to a Bitwise report published on April 10, 2024, the top five mining companies sold a total of about 2,000 Bitcoin, marking a two-year low in the amount of cryptocurrency sold.
The first quarter of 2022 marked the final occasion in which the top five mining companies sold fewer than 2,000 Bitcoin. The research is released just a few days before the 2024 Bitcoin halving. Following the halving, mining companies’ income may suffer when combined with an ever-rising Bitcoin hash rate.
Bitcoin miner revenue increased 30% from quarter to quarter, triple the recent lows from the fourth quarter of 2022, despite a bleak prognosis for certain miners. According to Bitwise, the revenue earned by Bitcoin miners surpassed $4.5 billion.
According to Laurent Benayoun, CEO of Acheron Trading, “In dollar terms, it’s not obvious that miners would be worse off after the halving, quite the opposite […] The decrease in mining rewards is going to be compensated by an increase in network fees.”
However, the months after Bitcoin halvings have generally dropped in miner earnings. The month following the 2020 Bitcoin halving saw a 40% decrease in post-halving mining revenue, whereas the month following the 2016 Bitcoin halving saw a 51% reduction in revenue.
Marathon Digital was the top mining company among the top five, with over 2,500 BTC created in the first quarter of 2024, down from over 4,000 BTC in the fourth quarter of 2023.
Nevertheless, during the first quarter of the year, Cipher Mining only paid an average of $8,626 per Bitcoin, while Marathon Digital had the highest average mining costs of $22,249 per Bitcoin. By contrast, the first quarter of 2024 saw an average price of $53,534 for Bitcoin.
Also Read: Bitcoin Miner Stocks Plunge Post-Halving Profit Fears
