Bitcoin’s halving is coming. Miners are looking for new ways to make money.
Companies that unlock new bitcoins are revamping their businesses to depend less on the cryptocurrency ahead of a supply contraction that will cut profits in half. The crypto industry is holding its breath for an event called the halving, an adjustment to the bitcoin blockchain that cuts in half the number of bitcoins that can be unlocked by miners. The change, which takes place every four years, will halve the number of bitcoins released on average every 10 minutes to 3.125 from 6.25 on or around April 19.
Bitcoin bulls are excited because the event further constrains the cryptocurrency’s supply, while demand has ramped up thanks to a new class of exchange-traded funds holding the token. Bitcoin’s supply was capped at 21 million by its pseudonymous creator Satoshi Nakamoto, and more than 90% have already been released. Crypto traders believe this event will drive bitcoin’s price higher over time.
Strong demand for bitcoin ETFs has propelled the token’s price to new highs in recent weeks. That, in turn, has boosted how much money bitcoin miners are making from fresh tokens to more than $70 million a day. How that fares in the future is less certain.
Despite the rally in bitcoin, the miners’ stock prices are down sharply this year on worries about the halving. If bitcoin’s price rises strongly as new supply curtails, it could soften the financial blow. If it doesn’t, it could challenge the survival of some miners.
Bitcoin’s short history has been dotted with wild surges and devastating crashes. So far, each bust has been followed by another boom cycle that attracted more investors. Some miners are looking for opportunities to sell their technology to artificial-intelligence companies, while others are exploring ways to
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