Zhitong Finance has learned that the Bitcoin halving is expected to occur in April 2024, which usually causes Bitcoin to rise even higher in the following months. But what impact will this event have on Bitcoin mining companies? The halving means that Bitcoin mining companies will receive less Bitcoin, resulting in less operating income for these companies. Does this mean that the share price of Bitcoin mining companies will go down due to the Bitcoin halving?
As can be seen from the last Bitcoin halving, which took place on May 11, 2020, there was a significant difference in the performance of some of the most popular Bitcoin mining companies in the 150 days following the halving: Marathon Digital (MARA.).US) and Riot Platforms (RiotUS) have all reaped significant returns, while BitFarms (BitFus) and hut 8 (hutUS) declined.
In fact, it's difficult to assess the extent to which the Bitcoin halving will impact Bitcoin mining companies** because there are many factors to consider, including broader market developments, performance reporting, and more. In addition, investors may have priced in the halving of the Bitcoin miner's share price.
At most, the halving is likely to have a temporary impact on Bitcoin mining companies, and the most important factor remains Bitcoin's. If Bitcoin's **continues**, then the halving may not matter, as these mining companies may still have much higher revenues in the future.
For investors, the difficulty of bitcoin is still the biggest risk. While investors are bullish on Bitcoin's future prospects, regulation and user acceptance will ultimately determine Bitcoin's future.