Zhitong Finance noted that Bitcoin miners are expected to halve their revenues in April, when the blockchain network protocol will halve the rewards (Bitcoin) for validating transactions.
According to data compiled by CryptoQuant, since the beginning of 2024, the miner reserve (unsold bitcoins held in digital wallets associated with the company) has decreased by 8,400 tokens to 1.8 million, which is the level of June 2021. Analysts say this decline is a sign that miners are ** tokens.
Matthew Sigel, head of digital asset research at Vaneck, said: "Miners have started to have more tokens to shore up their balance sheets and fund growth capex in anticipation of a tough period when margins will halve in April. "After the halving, scale will become even more important. ”
The quadrennial halving reduces the amount of bitcoin miners earn through computers that protect the network by solving complex puzzles. The halving is key to capping the amount of Bitcoin at 21 million tokens. In the upcoming event, the reward for each block starts from 625 coins down to 3125 coins.
Miners' holdings of Bitcoin have been declining.
Miners appear to have put pressure on Bitcoin, which has been in the doldrums since the approval of the first spot ETF that holds Bitcoin directly on January 10. The token has been sold for about 6 during this period7%, as of press time, Bitcoin has ** 07%, to $42,853.
According to CryptoQuant, 3,617 BTC have been transferred from miners' wallets to exchanges since the ETF was approved. On February 1, there was a net outflow of 13,542 tokens, the largest one-day outflow since December 2020.
Crypto exchange Bitfinex wrote in a recent report: "Miners appear to be ** their Bitcoin holdings to fund the purchase of more efficient mining equipment." "The impact of reduced revenues on small-scale mining companies is particularly strong and can lead them to bankruptcy. ”
While smaller mining companies with less access to the capital markets may be tapping into their Bitcoin funds, larger companies have been tapping into cash reserves and raising capital through ***.
An increase in the amount of bitcoin from miners to exchanges could mean a sell-off.
Marathon Digital (MARA., the largest miner in the United States.)US) said it would sell bitcoin from reserves in the past to cover operating expenses. But the company has been increasing its cash and bitcoin positions since taking control of its debt last year.
"Marathon has about $1 billion in cash and bitcoin on its balance sheet," said Charlie Schumacher, its vice president of corporate communications, "This funding, which includes 15,741 bitcoins, gives us the flexibility to do well if Bitcoin's historical ** cycle repeats itself, or take advantage of consolidation opportunities when the industry is under pressure." ”
Bitcoin grew by 157% last year, with bets on increased demand from US spot ETFs and the conventional wisdom that halving is the factor that supports bitcoin. But the biggest digital asset rally has been dashed in 2024.