Kaiko Research’s recent report indicates that Bitcoin miners may continue to sell their assets due to reduced rewards and a sharp decline in network costs.
Following the halving event, Bitcoin’s network fees dropped by 45% in May, falling from $5 in March 2024 to between $2.75 and $2.75.
Moreover, the halving event also reduced the block reward from 6.25 BTC to 3.125 BTC per block, while mining costs increased.
Additionally, Bitcoin’s price has remained relatively stable, providing some economic relief to miners.
Read more:
The German government expressed surprise at its latest purchase of Bitcoin.
In response, Marathon Digital sold XNUMX BTC in May and plans further sales. Increased miner participation could lead to a decline in Bitcoin prices. Some miners are diversifying their operations, such as mining other cryptocurrencies like Kato and Caspa (KAS).
Financial pressures have led to industry consolidation attempts, such as Riot Blockchain’s acquisition of Bitfarms Ltd. and the Grid Infrastructure Company from CleanSpark for $1.55 billion.
As miners adapt to these challenges, we may see more strategies aimed at maintaining profitability through mergers and acquisitions in the industry.
