The next Bitcoin halving is expected to take place on Friday evening. After that, Bitcoin miners only earn half of the coins they previously earned by mining a block on the blockchain. If the Bitcoin price remains the same, this is guaranteed to have a negative impact on miners’ revenue. As a result, the prices of listed miners have fallen sharply.
Bitcoin miners are well prepared for the halving
Investors and Bitcoin miners have been preparing for the upcoming halving for months. Many miners made huge expansions last year. These expansions largely consist of new ASIC mining hardware, which has made miners significantly more efficient.
In theory, this reduces production costs, which affects profits. Investors were very happy with this news last year, judging by the share prices of listed mining companies.
At the same time, there has been a narrative for years that the halving cannot be priced in. This is because the Bitcoin network itself would have no cash flows. However, there is still no clarity on this view. In recent months, there have also been analysts stating that the halving could be priced in and has even already been done so.
Bitcoin miner prices are falling sharply
Only time can tell what will happen after the upcoming halving. Some assume that a stalemate will occur precisely because the market is so well prepared for it. This preparation is also evident in investors’ actions, as stocks have fallen sharply in recent weeks.
For example, shares of Riot Platforms (ticker: RIOT) and Marathon Digital (MARA) are already down 57%, according to data from Google Finance. CleanSpark (CLSK) prices continued to rise for a while, but this company’s shares have also fallen 40% since the end of March.
According to CompaniesMarketcap, 21 different Bitcoin-related companies currently have their shares listed on the stock exchange. More than half of them are miners, most of them in the United States.
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