With only about 5 days left until Bitcoin’s fourth halving, the question of whether Bitcoin miners will sell off Bitcoin in large quantities after the halving to maintain their operations has attracted much attention from the market. According to the latest data from Y, the seven major listed mining companies in the United States and Canada currently hold Bitcoin worth $2.79 billion.
As the fourth halving approaches, the actions of Bitcoin miners have also been closely watched. According to statistics released by blockchain data analysis platform Arkham on the 14th, after integrating data from seven leading listed mining companies in the United States and Canada, the total market value of these mining companies reached $12.71 billion. Currently, they hold Bitcoin worth about $2.79 billion in 782 independent wallets. The specific breakdown is as follows:
– Marathon Digital Holdings (MARA): Market value of $4.31 billion, Bitcoin holdings of $1.13 billion
– CleanSpark (CLSK): Market value of $3.35 billion, Bitcoin holdings of $195.8 million
– Riot Platforms (RIOT): Market value of $2.31 billion, Bitcoin holdings of $583.8 million
– Cipher Mining (CIFR): Market value of $1.13 billion, Bitcoin holdings of $88.1 million
– Hut 8 Corp (Hut): Market value of $720 million, Bitcoin holdings of $608.8 million
– Bitfarms (BITF): Market value of $630 million, Bitcoin holdings of $28.1 million
– HIVE Digital Technologies (HIVE): Market value of $260 million, Bitcoin holdings of $156 million.
As we know, the fourth halving will reduce the mining block rewards from the current 6.25 BTC to 3.125 BTC. This will significantly reduce the main income of miners. Since electricity is the largest expense, mining companies like Marathon Digital and Riot Platforms Inc. need to reduce their costs to maintain a positive profit margin.
Wintermute released a report earlier this month, stating that miners have been steadily selling off Bitcoin in anticipation of the halving. The current balance of Bitcoin held by miners has dropped to 1.794 million BTC, the lowest level since the beginning of 2021. Miners have sold off 27,000 BTC since November last year.
Wintermute believes that miners are selling off Bitcoin not because they are concerned about its price decline, but to ensure the continued operation of their businesses after the halving. The recent surge in Bitcoin prices has allowed miners to profit at higher prices and provide funds for equipment upgrades (older mining machines may need to be phased out due to inefficiency).
Wintermute also noted that the increase in the overall network hash rate of Bitcoin indicates that miners are upgrading their equipment. The Bitcoin network hash rate has increased by 45% in the past 5 months, reaching over 600 EH/s, significantly more than the 15% increase before the previous halving. This indicates that some mining companies are increasing or upgrading their equipment to mitigate the impact of the halving.
However, Markus Thielen, an analyst at 10x Research, warned last week that Bitcoin miners may sell off $5 billion worth of Bitcoin after the halving to cope with the rising mining difficulty and financial needs. This selling pressure may continue for four to six months, meaning that Bitcoin may consolidate sideways in the coming months.
The impact of the halving on the price of BTC is still unknown, but we will soon see the initial results unfold.