TheMinerMag experts believe that the revenue losses of the mining industry could total about $10 billion per year. At the same time, 80% of small and medium-sized mining companies will take the main financial blow. In particular, due to the fact that their financing schemes based on loans and injections of venture capital do not allow them to quickly adapt the technological process to an increase in cost and a change in the profitability of mining operations. Whereas public mining companies can raise funds through the sale of shares, as well as direct the resources earned from the sale of their own reserves in bitcoins to support and develop the business.
According to TheMinerMag data for March 2024, Marathon, Hut8 and Riot — the largest public mining companies and HTC hodlers — accounted for more than 70% of the total bitcoin reserves. Marathon has more than 17,300 BTC in reserve, which together is close to the current reserves of Hut 8 and Riot combined.
TheMinerMag experts believe that one of the scenarios for the future development of the mining industry after the halving of the Bitcoin network may be the absorption by large industry players of their smaller competitors, who will thus try to mitigate the drop in revenues for their shareholders and investors.
Recall that at the end of last week, the difficulty of mining bitcoin by miners updated the historical maximum, reaching 86.3 trillion hashes. Compared to March, the indicator increased by 3.92%.