[Marathons and riots increase Bitcoin reserves as small miners sell off]
After the recent Bitcoin (BTC) halving, the dynamics of the mining industry changed significantly, affecting both small and large miners. Small miners are selling off Bitcoin to meet expenses, while large institutional investors such as Marathon Digital Holdings and Riot Platform are adding to their positions, showing different strategies and resources.
The second halving on April 19 reduced miner rewards from 6.25 BTC to 3.125 BTC, putting more pressure on miners with high costs or inefficient equipment. Small-scale miners, operating on low margins, face new dilemmas and must sell off their bitcoins to cover expenses. Reduced rewards have impacted their profitability, forcing them to sell assets frequently. Market volatility increases risks and financial stress for small-scale miners.
With current “hashrate prices” at their lowest levels in months, reduced rewards and falling hashrate prices have further exacerbated the financial woes of small miners, forcing them to sell Bitcoin to stay afloat.
On the other hand, large mining companies such as Marathon Digital Holdings and Riot Platform responded to the halving challenge by increasing their Bitcoin holdings. These companies adopt long-term investment strategies in anticipation of future price increases. Marathon Digital Holdings recently purchased $100 million in Bitcoin from the market, strengthening its "HODL" strategy and showing a high degree of confidence in Bitcoin's future appreciation.
Riot Platform has adopted a similar strategy, increasing its Bitcoin holdings as the mining environment changes. The company’s improvements in operational efficiency and lower electricity costs have allowed it to increase its Bitcoin holdings. These large companies have demonstrated their strength and financial stability in the face of reduced mining rewards.
