The five largest Bitcoin mining companies are bucking the trend and not selling their Bitcoin holdings, despite the upcoming Bitcoin halving event that will reduce the supply. According to a report by Bitwise, the top five mining firms only sold about 2,000 BTC in the first quarter of 2024, marking a two-year low. In comparison, they sold over 7,000 BTC in the previous quarter. This slowdown in selling comes just before the Bitcoin halving, which will cut block issuance rewards in half.
Although the profitability of mining firms may be impacted by the halving and the increasing Bitcoin hash rate, Bitcoin miner revenue actually saw a 30% increase quarter-over-quarter, reaching over $4.5 billion. This positive trend in revenue is a stark contrast to the historical decline in revenue that occurs after Bitcoin halvings. After the 2020 halving, mining revenue dropped by 40% in the following month, and after the 2016 halving, it declined by over 51%.
Among the top five mining firms, Marathon Digital mined the most Bitcoin in the first quarter of 2024, generating over 2,500 BTC. However, Marathon Digital also had the highest mining cost per BTC at $22,249, compared to Cipher Mining’s average cost of $8,626 per BTC. During this period, the average price of Bitcoin was $53,534.
Currently, Bitcoin miners worldwide hold over 700,000 BTC, which accounts for 3.4% of the total Bitcoin supply. The majority of Bitcoin supply, about 57%, is held by individuals. This data suggests that despite the upcoming halving, miners are confident in the long-term value of Bitcoin and are holding onto their holdings instead of selling them.