Bitcoin Miner Capitulation Hits Levels Seen During FTX Collapse
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Bitcoin miners are experiencing significant economic pressures, resulting in a major capitulation similar to levels seen during the FTX exchange collapse in 2022. The Bitcoin mining hashrate has dropped by 7.6% this month following Bitcoin’s recent halving, which reduced miner rewards to 3.125 BTC. Miner capitulation occurs when operational costs, including electricity and hardware, exceed the revenue from mining Bitcoin. Reduced network activity has significantly cut miners' revenues, and as a result, many are shutting down operations. Miners have intensified selling activities, offloading approximately 30,000 BTC valued at $2 billion last week. To diversify revenue streams, miners are increasingly turning to artificial intelligence (AI) and other Proof-of-Work (PoW) assets. Companies like Core Scientific and Hut 8 have secured significant funding for AI expansion. Marathon Digital has announced its entry into mining Kaspa, with 93 million KAS mined, valued at approximately $15 million as of June 25.
Fonte: ultramining.com ↗
