More selling pressure in the cryptocurrency market is likely on the horizon as Bitcoin miners with large holdings of the digital asset face a sharp drop in revenue, according to researcher Kaiko.
The main source of revenue for crypto-mining companies such as Marathon Digital, Riot Platforms and Cipher Mining was dramatically reduced by a Bitcoin code update in late April. Called the halving, such updates are preprogrammed in the blockchain to slash mining subsidy, a fixed amount of Bitcoin rewarded to miners for validating transaction data, by half every four years.
While Bitcoin miners sold most of their reserves amid the last crypto meltdown in 2022, they have been holding more over the last two years with a sharp rebound in the digital-asset market. Two of the largest public Bitcoin mining companies Marathon and Riot hold 17 631 Bitcoin worth just over $1.1 billion and 8 872 worth over $500 million, respectively, according to Kaiko.
Bitcoin rose about 2% to around $62 730 on Monday, and is down around 15% from an all-time high of almost $74 000 reached in March. Shares of Marathon were little changed at around $17.05, and are down 27% this year. Riot was also most unchanged at $9.46, and the stock has fallen around 40% since the start of 2024.
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