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CDS Crypto News Major Bitcoin Miners Hold onto Holdings Post-Halving Despite Reduced Rewards

Crypto News

Major Bitcoin Miners Hold onto Holdings Post-Halving Despite Reduced Rewards

The top five Bitcoin mining companies are holding onto their BTC reserves ahead of the halving, despite historical trends indicating a potential decline in mining revenue following the event.

sevval17/04/20241 Mins read329

Crypto News– The top five Bitcoin mining companies are holding onto their BTC holdings despite the impending halving event, which will cut the supply issuance by 50%.

Major Bitcoin Miners Hold onto Holdings Post-Halving Despite Reduced Rewards

According to a report by Bitwise on April 10, Bitcoin selling by these major mining firms dropped to its lowest level in two years during the first quarter of 2024, with only around 2,000 BTC sold. This contrasts sharply with the fourth quarter of 2023, when these firms collectively sold over 7,000 BTC. The upcoming halving, scheduled to reduce block issuance rewards from 6.25 BTC to 3.125 BTC per mined block, coupled with the ongoing rise in Bitcoin’s hash rate, may impact the profitability of these mining operations.

Although some miners face a challenging outlook, Bitcoin miner revenue surged by 30% quarter-over-quarter, marking a significant rebound from the lows seen in the fourth quarter of 2022. Bitwise reported that Bitcoin miner revenue surpassed $4.5 billion, indicating a strong recovery in the sector.

However, historical data shows that Bitcoin miner revenue typically decreases in the months following Bitcoin halving events. After the 2020 halving, post-halving Bitcoin mining revenue dropped by 40%, while following the 2016 Bitcoin halving, monthly revenue declined by over 51%.

Sources:cointelegraph

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sevval

Şevval has been actively writing since 2022 and is a third-year mathematics student at Ankara University. Her interest in writing is shaped particularly around innovative technologies such as Web3, artificial intelligence, and blockchain. She closely follows developments in these fields and aims to convey complex topics to readers in a clear and engaging manner. She enjoys combining her mathematical knowledge with technology to create content and strives to raise awareness about the digital world of the future.

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