A recent report by Kaiko Research revealed that Bitcoin miners are likely to continue selling their assets due to reduced rewards and plummeting network fees.
After the halving of Bitcoin in April, network fees dropped by 90%, from $45 in January 2024 to between $3 and $5.
In addition, the halving event also saw the rewards of each block decrease from 6.25 BTC to 3.125 BTC, while mining costs increased.
The price of Bitcoin remained relatively flat, which provided some financial relief for miners.
In response, Marathon Digital sold 390 BTC in May and plans further sales. This could cause Bitcoin’s price to drop if more miners join them. Some miners are diversifying their activities, such as mine other cryptocurrencies as Kaspa (KAS).
Financial pressures lead to industry consolidation as seen by the attempt of Riot Blockchain to acquire Bitfarms Ltd. and the acquisitionof Grid Infrastructure Inc. by CleanSpark Inc. for $155 million.
As miners adapt to these challenges, we may see more strategic mergers and acquisitions aimed at maintaining profitability in the sector.
BlueBird Mining Ventures, a London-listed firm traditionally focused on gold, is making headlines after announcing it will liquidate its gold reserves and begin accumulating Bitcoin as a treasury asset.
Bitcoin tumbled sharply today, shedding more than 3.5% in a matter of hours and briefly flirting with the critical $100,000 level.
Bitcoin is treading water near $105,000, but pressure is building on both sides of the trade as macro forces tighten.
BlackRock is making another assertive move into digital assets, quietly expanding its crypto portfolio with sizable purchases of both Bitcoin and Ethereum.