The cryptocurrency mining industry could suffer billions of dollars in losses due to Bitcoin halving.
The halving expected to take place on April 20th, will cut the total amount of Bitcoin that miners can earn daily from 900 to 450. This is expected to result in a revenue loss of approximately $10 billion per year.
Many mining companies invested in new equipment before the halving in order to maximize their revenue. According to CoinShares analyst Matthew Kimmell, “The strategic responses of miners to the overnight revenue drop could determine which ones will thrive and which ones will fail.”
Some investors have started taking short positions in mining companies in anticipation of a drop in their stock prices. According to S3 Partners LLC, the value of short positions taken from mining companies was about $2 billion as of April 11.
