Publicly traded bitcoin (BTC) miners are approaching the milestone of an aggregated $40 billion market cap, according to Farside data, doubling in sev

Bitcoin Miners Approach $40B Market Cap as Difficulty Set for Fifth Straight Increase

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2024-12-11 23:00:16

Publicly traded bitcoin (BTC) miners are approaching the milestone of an aggregated $40 billion market cap, according to Farside data, doubling in seven months as bitcoin's price rocketed through multiple record highs to approach six figures for the first time.

Miners' biggest challenge is revenue. The reward they receive for confirming blocks on the Bitcoin blockchain was cut 50% in April, when their combined market cap was about $20 billion. In this current epoch, only 450 bitcoin are mined a day and fees paid to miners remain at cycle lows, just 10 BTC ($946,000) on Nov. 27 according to Glassnode data.

That means they either have to diversify revenue streams or produce bitcoin at a cheaper cost than the spot price, currently about $96,000.

That's a challenge that is about to become more difficult. The mining difficulty, which measures how hard it is to produce the blockchain's blocks, is expected to increase by a further 3% at some point in the next few days.

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