Bitcoin miners are facing increasing challenges as the block reward halving and rising operational costs strain the industry. As of early August, the total amount of Bitcoin held by miners has dropped to 1,510,300 BTC, marking a 2.4% decline from the record highs seen in December 2020. At current prices, the total value of these assets amounts to approximately $86 billion, representing around 8% of all Bitcoin in circulation.
Blockchain analysis reveals that miners’ reserves began to decline with the onset of the bull market in late 2023. Since then, many miners have gradually sold off their holdings, anticipating the impact of the upcoming halving event. This trend has accelerated since April, as the financial pressure on mining companies intensified.
While some miners have managed to adapt to the changing landscape, others have pivoted their operations towards new ventures. Notably, a number of mining firms have shifted their focus to servicing tech companies involved in artificial intelligence (AI) development.
This reduction in miners’ Bitcoin reserves signals a significant shift in the industry, as companies navigate the evolving challenges of cryptocurrency mining.
The decline in Bitcoin reserves and rising costs highlight the challenges miners face.