Bitcoin Miners See Three-Year Low in Holdings After Halving Slashed Revenue

(Bloomberg) -- The amount of Bitcoin held in reserve by the companies who earn a profit by validating transactions on the blockchain has dropped to a three-year low in the wake of the April software code adjustment that slashed revenue.

The total amount of Bitcoin (CRYPTO: BTC) held by miners has dropped to around 1,510,300 tokens as of Aug. 3, according to a report from crypto researcher Kaiko.

That’s down about 2.4% from the record amount held in December 2020. At recent prices, the amount is worth around $86 billion, or about 8% of all the Bitcoin in circulation.

Miners have been selling tokens since the price of Bitcoin started to rally in late 2023, far before the most recent “halving” in April, the data show.

Proceeds from the sales are often used by the companies to help fund operating costs, with companies receiving fewer new tokens as rewards since the latest of four software upgrades.

The main source of revenue for crypto-mining companies such as CleanSpark (NASDAQ:CLSK) and Riot Platforms (NASDAQ:RIOT) was dramatically reduced by the halving.

The preprogrammed update slashed rewards the firms get from validating blockchain data, which is referred to as mining.

Higher network fees following the halving briefly mitigated the loss in revenue for miners, but this was short-lived and average fees have since fallen to $2 from a post-halving high of $143, according to Kaiko.

Despite an overall trend of selling, public mining companies have actually increased their holdings of Bitcoin by 60% to 54,000 tokens since January 2023, according to US Securities and Exchange Commission filings.

Marathon Digital (NASDAQ:MARA) recently reported that it bought $100 million worth of Bitcoin.

Core Scientific (NASDAQ:CORZ) said Wednesday that it had a second-quarter loss of $804 million, primarily from a mark-to-market adjustment to the company’s warrants and other contingent value right liabilities.

The above is the detailed content of Bitcoin Miners See Three-Year Low in Holdings After Halving Slashed Revenue. For more information, please follow other related articles on the PHP Chinese website!