Publicly traded bitcoin miners are approaching a $40 billion market cap, doubling in seven months as the price of bitcoin surged. However, miners have been facing challenges with revenue, as the reward for confirming blocks on the Bitcoin blockchain was cut in half in April. They either need to diversify revenue streams or find ways to produce bitcoin at a cheaper cost than the current spot price. The mining difficulty is expected to increase, making it even harder and costlier for miners to produce new blocks. Some miners have diversified into the AI and high-performance computing industries, while others are leveraging their bitcoin holdings. The CoinShares Valkyrie Bitcoin Miners ETF has underperformed bitcoin this year, with a 60% increase in share price compared to bitcoin's 113% increase.
- Content Editor ( coindesk.com )
- 2024-11-28
Bitcoin Miners Approach $40B Market Cap as Difficulty Set for Fifth Straight Increase