Bitcoin Miners Stockpile Assets as Halving Nears, Betting on Price Surge

  • Sergey Maga
  • 19 April, 2024 12:38
Bitcoin Miners Stockpile Assets as Halving Nears, Betting on Price Surge

As the Bitcoin halving event approaches, cryptocurrency miners are accumulating bitcoin in anticipation of a potential increase in value. This strategic hoarding is in response to the upcoming event on Friday, which will see the reward for mining bitcoin halved, significantly reducing the daily output of new bitcoins from 900 to 450, according to FT.

Major mining companies such as Marathon Digital, CleanSpark, and Bitfarms are reported to have amassed bitcoin holdings collectively worth about $2.8 billion. These companies are betting that the reduced supply, combined with ongoing demand, will drive up the bitcoin price, offsetting the decreased rewards for mining activity. According to The Miner Mag, this level of reserve is the highest since May 2022, indicating a robust confidence among miners in the cryptocurrency’s future value.

The anticipation builds against a backdrop of increasing regulatory acceptance and financial products that directly invest in bitcoin, which have contributed to a 121% price surge over the past six months. Despite a recent pullback in prices, industry leaders remain optimistic about bitcoin’s long-term value.

However, the reduced rewards post-halving are expected to strain less efficient miners, potentially pushing them out of the market. This has led to a significant investment in new mining equipment, with miners spending over $1 billion in a bid to gain a competitive edge and maintain profitability.

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