With the Bitcoin mining landscape gaining steam, the competition is heating up and the most positioned miners will be the biggest beneficiaries moving forward. Today the price of Bitcoin (BTC) is down. The major crypto asset is treading below ,000 this morning. The main crypto stocks in the pre-market are also in the red zone. Coinbase Global Inc (NASDAQ: COIN) is down 3% and is trading at around 3. MicroStrategy Inc (NASDAQ: MSTR) stock is down over 3%, trading at 1. Marathon Digital Holdings Inc (NASDAQ: MARA) is trading at around , which means that it has already lost over 5% today. Riot Platforms Inc (NASDAQ: RIOT) is also down. Its loss is 4.99% and the stock is exchanging hands at .85. The pre-market loss of Robinhood Markets Inc (NASDAQ: HOOD) is over 2.5%.
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With the Bitcoin mining landscape gaining steam, the competition is heating up and the most positioned miners will be the biggest beneficiaries moving forward.
Today the price of Bitcoin (BTC) is down. The major crypto asset is treading below $41,000 this morning. The main crypto stocks in the pre-market are also in the red zone.
Coinbase Global Inc (NASDAQ: COIN) is down 3% and is trading at around $143. MicroStrategy Inc (NASDAQ: MSTR) stock is down over 3%, trading at $551. Marathon Digital Holdings Inc (NASDAQ: MARA) is trading at around $17, which means that it has already lost over 5% today.
Riot Platforms Inc (NASDAQ: RIOT) is also down. Its loss is 4.99% and the stock is exchanging hands at $14.85. The pre-market loss of Robinhood Markets Inc (NASDAQ: HOOD) is over 2.5%. The trading price is around $11.
Crypto Stocks and Miners to Benefit More from Halving
While the outlook for these miners is dampened at the moment, projections from top market analysts show that this trend is temporary. With their deep correlation to Bitcoin price, the fall of these crypto-based stocks is imminent. One thing remains clear though, they are also primed as the biggest beneficiary of the impending rally that the Bitcoin Halving sentiment of next year will usher in.
According to market analyst, Jason A. Williams, this upcoming halving can dramatically shift the narrative in favor of Bitcoin holders and more importantly, Bitcoin miners.
“The event, not as ruthless. Not as unforgiving to inefficient miners. Block fees are at or exceeding the block reward,” he said in a statement.
The Bitcoin halving event takes place once every four years and with this event comes a 50% slashing in the rewards issued to miners. The last halving that took place in 2020 dropped the reward to 6.25 BTC per block. With the next halving scheduled for April 2024, this reward will be further reduced to 3.125 BTC per block.
While the reward seems unattractive looking into the future, miners will benefit from the increased valuation from the scarcity that will be generated following the event.
Preparation For Halving Shifts Gear
Understanding the potential impact of halving the price of Bitcoin, miners are doubling down on their effort to get a reasonably large piece of the pie by investing in more mining machines.
As part of this effort, major crypto mining firms have reportedly spent as much as $747 million in bolstering their miner stockpile while Marathon Digital has earmarked the sum of $700 million to invest in miners to add to its hashrate.
Additionally, Bitcoin miners are getting funded by top venture capital firms in the industry. Notably, new entrants are also making their way into the scene with the likes of stablecoin issuer Tether Holdings Ltd committing over $500 million to its Bitcoin mining venture in the next few months.
With the Bitcoin mining landscape gaining steam, the competition is heating up and the most positioned miners will be the biggest beneficiaries moving forward.