Major mining firms expect the Bitcoin halving to reduce profitability and cause an increase in network fees, which could challenge the existence of less efficient miners.
Marathon Digital, considered one of the largest mining firms in North America, is among the players that have long been planning for the halving. The firm’s chief growth officer Adam Swick tells Cointelegraph the halving will be a test to reveal the most efficient and well-funded entities. History also plays a role, as miners have had four years to forecast and plan how to manage operations. Stronghold Digital Mining CEO Greg Beard noted that previous halvings forced mining companies to adapt to lower-margin environments.
The Bitcoin mining hash rate has steadily risen to new all-time highs ahead of the fourth halving. Source: Blockchain.com Stronghold’s CEO adds that the build-up to the halving has already led to a “quartering of mining economics” led by miners adding capacity to their machinery without the price of Bitcoin appreciating in lock-step.“The recent ETF approval supports the more recent run-up in Bitcoin price and has furthered the existing supply/demand imbalance, so miners who can keep costs low are set to win out the halving as Bitcoin price increases,” Beard said.
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Bitcoin halving will be a litmus test for inefficient ops: Mining execsMajor mining firms expect the Bitcoin halving to reduce profitability and cause an increase in network fees, with varying impacts for small and large miners.
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