Despite the upcoming Bitcoin halving, the five largest Bitcoin mining firms have decided not to sell their BTC holdings. According to a recent report by Bitwise, these mining firms have reduced their selling activities to a two-year low in the first quarter of 2024, with only around 2,000 BTC sold. This is a significant decrease compared to the previous quarter, where over 7,000 BTC were sold.
The Bitcoin halving, which is set to occur soon, will reduce the block issuance rewards from 6.25 BTC to 3.125 BTC per mined block. This, combined with the increasing Bitcoin hash rate, could potentially impact the profitability of mining firms.
However, despite the potential challenges, Bitcoin miner revenue has actually seen a 30% increase quarter-over-quarter, reaching over $4.5 billion. This is a significant improvement from the previous quarter and shows a positive trend in the industry.
Although Bitcoin mining revenue has historically declined after halvings, Laurent Benayoun, the CEO of Acheron Trading, believes that the revenue won’t necessarily fall in U.S. dollar terms. He points out that post-halving revenue declined by 40% in 2020 and over 51% in 2016, but it is important to consider the currency value and other factors.
Among the top five mining firms, Marathon Digital has mined the most Bitcoin, generating over 2,500 BTC in the first quarter of 2024. However, it also has the highest mining cost at $22,249 per BTC, compared to Cipher Mining’s average cost of $8,626 per BTC. It is worth noting that Bitcoin’s average price during this period was $53,534.
Currently, Bitcoin miners worldwide hold more than 700,000 BTC, which accounts for 3.4% of the total Bitcoin supply. The majority of the supply, around 57% or 12 million BTC, is held by individuals.
In conclusion, while the upcoming Bitcoin halving poses challenges for mining firms, the top five mining firms have decided to hold onto their BTC holdings. Despite this, Bitcoin miner revenue has seen a significant increase, and the long-term effects of the halving on mining revenue remain to be seen.