Post Bitcoin Halving “Bigger Miners” Accumulate More BTC: CryptoQuant

cryptonews.com:

Since the Bitcoin halving event, a noticeable trend has emerged within the mining community: smaller miners are selling their Bitcoin holdings, while larger, publicly traded mining companies are accumulating more Bitcoin, according to Julio Moreno head of research at CryptoQuant.

Since the #Bitcoin halving smaller miners are the ones selling; Bigger miners have accumulated.

This makes sense with what large publicly-traded mining companies have reported: higher reserves and some even buying Bitcoin. pic.twitter.com/E3j7IrcaVU

— Julio Moreno (@jjcmoreno) July 30, 2024

This shift reflects the differing strategies and financial capabilities between small-scale and large-scale miners in the aftermath of the halving.

Bitcoin halving, an event that occurs approximately every four years, reduces the reward for mining new blocks by half. The most recent halving was on April 19. The halving saw miners’ rewards drop from 6.25 BTC to 3.125 BTC. This reduction in rewards increases the operational pressure on miners, particularly affecting those with less efficient operations or higher costs.

Bitcoin mining has become as cost-intensive as ever since the halving, with the asset’s “hashprice” at its lowest levels ever over the past two months, according to Hashrate Index data.

Smaller miners, often operating with thinner profit margins and less advanced mining equipment, find themselves under more immediate financial pressure post-halving.

The reduced income from mining means they must sell their Bitcoin to cover operational costs and remain viable. This necessity to liquidate holdings makes them more vulnerable to market fluctuations and operational challenges.

In contrast, larger, publicly traded mining companies have demonstrated a capacity