The Bitcoin halving event, a major event that has attracted global attention, has stirred up the digital currency market. The stock prices of US listed mining companies have also experienced huge fluctuations, triggering widespread discussion and attention in the market. In this article, we will explore the impact of Bitcoin halving on mining companies, analyze the reasons and the underlying logic behind it.

Bitcoin halving is not an isolated event, but a phenomenon that occurs once every 210,000 blocks mined by the Bitcoin network. This means that the mining reward for Bitcoin will be halved, resulting in a significant increase in the cost of mining. This change is undoubtedly a huge challenge for mining companies. The halving of Bitcoin means that the rewards received by miners are halved, which directly affects the profitability and development prospects of mining companies.

After the Bitcoin halving, mining companies are facing higher cost pressure. Due to the increased difficulty of mining, more computing power and resources are required to obtain the same number of Bitcoin rewards. This forces mining companies to face higher operating costs, which in turn affects their profitability. In order to reduce costs, many mining companies have to take measures such as layoffs and reduced equipment investment to maintain stable operations.

The stock prices of US listed mining companies have fallen sharply after the Bitcoin halving. Investors are worried about the future profit prospects of mining companies and have sold their stocks, causing the stock price to fall sharply. This phenomenon also reflects the market's sensitivity to the Bitcoin halving event. The increased uncertainty of investors in the digital currency market has led to large fluctuations in stock prices.

However, the Bitcoin halving event does not only bring negative effects. For the entire Bitcoin network, halving means that the scarcity of Bitcoin will be further improved, which may drive up the price of Bitcoin. This will bring more value-added opportunities for investors holding Bitcoin. For mining companies, although they face greater challenges in the short term, in the long run, the Bitcoin halving will also promote the further standardization and development of the industry, bringing them more business opportunities and development space.

In general, the Bitcoin halving event is a severe test for mining companies, but also an opportunity for development. In the face of challenges, mining companies need to continuously optimize their operating models, improve efficiency, and reduce costs to adapt to changes in the industry. Only by continuous innovation and development can they remain invincible in the fierce market competition. The future of Bitcoin is full of variables and opportunities. Let us wait and see and witness the future development of the digital currency market.

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According to the Bitcoin halving countdown data, the current Bitcoin block height is 839576, and there are less than three days left before the fourth halving (block height reaches 840,000), which is expected to start at 8:00 am on April 20, Beijing time.

At that time, the block reward will be halved from 6.25 BTC to 3.125 BTC, which may lead to a significant reduction in the main income of Bitcoin miners.

US Bitcoin listed mining companies' stock prices plummeted

Bloomberg calculations show that the fourth halving will reduce the number of Bitcoins that miners can earn from the current 900 to 450 per day. Based on the current price of Bitcoin, the entire Bitcoin mining industry may lose about $10 billion in revenue each year.

Against this background, investors' interest in bearish mining stocks has increased significantly recently, and is reflected in the stock prices of major US Bitcoin mining companies.

Marathon Digital (MARA), Riot Platforms (RIOT), and Clean
Spark (CLSK) have plunged 24.78%, 29.48%, and 17.07% respectively in the past month; Valkyrie Bitcoin Miner ETF (WGMI) has also plunged 16.62% in the past month.

According to S3 Partners
LLC estimates, as of April 11, the short position balance of 15 US listed mining companies was about US$2 billion, and the short position ratio accounted for 15% of the total outstanding shares of mining companies, which is three times the US average of 4.75%, reflecting the strong bearish sentiment of traders.

Mining companies remain confident about income and expenditure after halving

But despite the decline in stock prices, US Bitcoin mining giants remain optimistic about the company's development momentum after halving. The executives of these companies claim that low-cost operations, more efficient mining equipment, and growing demand for crypto assets can make up for the loss of mining income after halving.

In addition, these mining companies also seem to believe that more demand for Bitcoin spot ETFs will also push up Bitcoin prices and mitigate the negative impact of halving. In an interview with Bloomberg on Tuesday, Jason Les, CEO of Riot Platforms, said: "Riot is here for the long term. We have a strong long-term investment thesis for Bitcoin, and I think we are ready for a very positive trend in Bitcoin in the coming months."

Coindesk reported that Wall Street investment bank and research institution Bernstein interviewed the CEOs of Riot Platforms (RIOT), Clean
Spark (CLSK), Marathon Digital (MARA), Cipher
Mining (CIFR) and Hut8 (HUT) in a recent report. The CEOs of these large mining companies expressed optimism to the agency: the dollar revenue of mining companies is at a historical high, providing a solid buffer for miners before the halving, and "the debt on the balance sheet is relatively low."

Bernstein: There will be a wave of mergers and acquisitions among mining companies

The report also stated that another significant change in this halving is the application and Layer2 development on the Bitcoin blockchain, which has led to an increase in network fees, which are returned to miners as an incremental revenue stream. In addition, Riot and CleanSpark also expect to double their production capacity by the end of this year, which will offset the impact of the halving.

It is worth noting that some CEOs emphasized the potential for mining consolidation and acquisition, predicting that the four giants will dominate Bitcoin mining. (Miners that are not strong enough to improve efficiency may be eliminated or acquired)

"Clean
Spark's CEO expects the industry to consolidate into four leading miners, and believes that RIOT, MARA, CLSK and CIFR will be in the leading position; MARA's CEO also emphasized the path of industry consolidation and is also optimistic about these four companies dominating."