Efe Nail Saltık 
Crypto miners are in a better position for the upcoming Bitcoin reward halving, according to Benchmark, largely due to significant increases in Bitcoin price over the past six months. The report highlights that Bitcoin’s nearly 140% rise in the last two quarters and significant gains in other cryptocurrencies such as Ethereum have provided miners with a buffer against the effects of a 50% drop in the rewards they earn.
The halving event, which is expected to occur soon, slows the Bitcoin supply growth rate by 50%. But the recent rise in Bitcoin price may ease some of the challenges faced by less efficient miners in the near term. Haris Kolay, chief strategy officer at Bitcoin miner Bitdeer Technologies, suggested that the rise in Bitcoin price could cushion the impact of the halving on inefficient mining platforms, potentially reducing the dramatic impact on the network’s hashrate.
Benchmark analyst Mark Palmer noted that publicly traded Bitcoin miners are taking steps to increase their electricity and hashrate capacity in response to the reduced revenue and gross profit profiles expected after the halving. However, uncertainty surrounding the event has led to a year-to-date decline in shares of listed miners, despite Bitcoin’s 46% rise in the same period.
Palmer suggests that if history repeats itself and Bitcoin experiences a strong rally following the halving, the impact on the miners’ economy may diminish over time. Additionally, a possible increase in network fees could further offset the impact of decreasing block rewards.
The report also notes that the halving’s impact on Bitcoin price could be further amplified by the emergence of spot Bitcoin exchange-traded funds (ETFs) after they were approved in the US in January. As institutions begin investing in these ETFs, inflows into the market are expected to increase significantly, potentially increasing demand for Bitcoin and further supporting its price.
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