With only about 5 days left until Bitcoin’s fourth halving, there is much speculation about whether Bitcoin miners will sell off their Bitcoin holdings after the halving in order to maintain their operations. According to the latest data from Y, the seven major listed mining companies in the United States and Canada currently hold Bitcoin worth $2.79 billion.
As the fourth halving approaches, the actions of Bitcoin miners have attracted significant attention. According to data released by Arkham, a blockchain data analysis platform, the total market value of these seven major mining companies in the United States and Canada is $12.71 billion. They currently hold Bitcoin worth approximately $2.79 billion in 782 separate wallets. The specific breakdown is as follows:
1. Marathon Digital Holdings (MARA): Market value of $4.31 billion, BTC holdings of $1.13 billion
2. CleanSpark (CLSK): Market value of $3.35 billion, BTC holdings of $195.8 million
3. Riot Platforms (RIOT): Market value of $2.31 billion, BTC holdings of $583.8 million
4. Cipher Mining (CIFR): Market value of $1.13 billion, BTC holdings of $88.1 million
5. Hut 8 Corp (Hut): Market value of $720 million, BTC holdings of $608.8 million
6. Bitfarms (BITF): Market value of $630 million, BTC holdings of $28.1 million
7. HIVE Digital Technologies (HIVE): Market value of $260 million, BTC holdings of $156 million.
With the upcoming halving, it is expected that mining rewards will be reduced from the current 6.25 BTC to 3.125 BTC. This will significantly reduce the main source of income for miners. As electricity is their largest expense, mining companies such as Marathon Digital and Riot Platforms Inc. need to reduce costs to maintain a positive profit margin.
In a recent report by Wintermute, it was noted that miners have been steadily selling off Bitcoin in anticipation of the halving. The current balance of Bitcoin held by miners has dropped to 1.794 million BTC, the lowest level since the beginning of 2021. Miners have sold off 27,000 BTC since November last year.
Wintermute believes that miners are not selling Bitcoin out of fear of a price decline, but rather to ensure the continued operation of their businesses after the halving. The recent surge in Bitcoin prices has allowed miners to profit at higher prices and provide funding for equipment upgrades. Wintermute also notes that the increase in Bitcoin network hash rate indicates that some mining companies are increasing or upgrading their equipment to mitigate the impact of the halving.
However, analyst Markus Thielen from 10x Research warned last week that Bitcoin miners may sell off $5 billion worth of Bitcoin after the halving to cope with the increasing mining difficulty and financial needs. This selling pressure may last for four to six months, potentially causing Bitcoin to consolidate in the coming months.
The impact of the halving on the price of BTC remains uncertain, but we will soon see the initial results unfold.