Publicly traded Bitcoin miners are closing in on a $40 billion market cap, doubling their value in just seven months as Bitcoin’s price flirts with six-figure highs, according to Farside data. This surge reflects the broader optimism in the crypto space but comes with challenges that miners can’t ignore.
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Difficulty Climbs as Revenue Stays Tight
While miners benefit from Bitcoin’s rising price, their revenues tell a tougher story. The block rewards were halved in April, leaving miners with just 450 Bitcoin per day. Additionally, fees paid to miners remain at cycle lows, averaging 10 BTC (about $946,000) as of Nov. 27, per Glassnode. This squeeze is set to intensify, as Bitcoin’s mining difficulty—a measure of how hard it is to mine a block—is expected to rise by another 3%, marking its fifth consecutive increase.
Bitcoin Miners Diversify to Stay Competitive
To tackle these hurdles, many miners are diversifying. Companies like Iris Energy (IREN) are tapping into AI and high-performance computing, while MARA Holdings (MARA) is bolstering its Bitcoin reserves, recently adding 703 BTC after raising $1 billion through a convertible note.
The CoinShares Valkyrie Bitcoin Miners ETF (WGMI), a benchmark for the sector, has risen 60% year-to-date but still lags behind Bitcoin’s 113% growth. Miners face a clear choice: adapt or risk being left behind as competition heats up.
At the time of writing, Bitcoin is sitting at $95,259.14.
