Analysts Predict Continuing Bitcoin Mining Mergers

Analysts Predict Continuing Bitcoin Mining Mergers

Bitcoin miners are likely to continue merging over the next 18 months, according to Ryan Rasmussen, an analyst for cryptoasset manager Bitwise Research. In an interview with Decrypt, Rasmussen said that "the trend toward consolidation among crypto miners is likely to continue over the next 18 months." "As the block reward subsidy gets cut in half after the next bitcoin halving, some miners are going to struggle," he explained, adding that "miners with strong balance sheets will likely continue to try to buy up distressed assets from their competitors for the foreseeable future." The trend toward consolidation in the bitcoin mining industry has been underway for several years. In 2021, the publicly traded mining company Marathon Digital Holdings acquired the privately held miner Beowulf Mining in a deal valued at $55 million. In 2022, Riot Blockchain, another publicly traded mining company, acquired Whinstone US for $651 million. The trend toward consolidation is likely to continue as the bitcoin mining industry matures. As the block reward subsidy gets cut in half after each halving, it will become increasingly difficult for small miners to compete with larger miners who have access to more capital and resources. As a result, small miners are likely to continue to be acquired by larger miners, leading to further consolidation in the industry.