Reports say that Bitcoin miners are preparing for the 2024 halving, with calculated actions to optimize their profits and withstand price swings despite the unstable market conditions. Bernstein has been named one of the biggest public liability mining companies, accounting for 16% of the total number of Bitcoin mined globally.
Investigations into their activities show that these mining giants currently control a strong mining capacity of 72 exahashes per second (EH/s), and over the next two to three years, and plan to increase it by an astounding 182%.
These miners have acted proactively to prepare for the impending Bitcoin halving in Q1 2024 and to survive potential price volatility and cost increases. Four mining companies— Hive Digital (HIVE), Riot (RIOT), Marathon Digital (MARA), and Hut 8 (HUT) —have chosen to keep Bitcoin on their balance sheets. According to the report, this decision is calculated to manage market volatility and strengthen their resilience.
As of the time of writing, the price of Bitcoin is roughly $29.052,50. The report also has it that there is a more significant number of miners with cheaper cost of production, and very little debt, which has been predicted to be the major beneficiaries of this intended expansion in production capacity.
It was gathered that 15 of these major companies have production costs of less than $15,000 per bitcoin, giving them a competitive advantage in the cryptocurrency mining market, which is said to be fiercely competitive.
The hash rate has increased by a 661% over the last two years. Om Labde from Todayq News explained that “this expansion shows that Bitcoin mining is still viable and popular despite the difficulties and market turmoil.”
Hard Times Awaits BTC Miners, As They Make Adjustments
Biden administration had recently slapped a 30% tax on cryptocurrency mining companies, citing worries about the energy usage incurred by mining operations. Power sector stakeholders have advised that miners’ operations need to be modified to conform with the new tax regulations, which has added another layer of complexity due to the legislative change.
Labde, in his piece, defended the miners, saying that the market turbulence and regulatory changes present difficulties, but Bitcoin miners’ resolve is unwavering. He added, “Their commitment to boosting mining capacity and keeping Bitcoin on their balance sheets shows that they have a long-term outlook for the sector.”
The mining industry is expected to undergo considerable changes as 2024 draws nearer. These industry key players in the mining industry have revealed their readiness to face the challenges offered by a volatile market.
Meanwhile, price fluctuations, which often affect the miners’ debt-to-equity ratio, have been identified as the major challenge. According to the available data on Todayq News, three of the four mining companies analyzed have more than one ratio, which has reduced their ability to handle a long period of depressed BTC prices.