Bitcoin Hit a Major Milestone—Most Miners Won't Be Around for the Next One
The Bitcoin network reached a milestone with the mining of its 20 millionth BTC, leaving only 1 million coins to be created over the next century. Mining firms, facing dwindling rewards and increased competition, are pivoting towards AI and high-performance computing (HPC) as margins in mining shrink, especially with another halving event expected in 2028. Many public miners are expected to reduce their Bitcoin holdings and shift capital towards AI workload infrastructure by 2027-2028, as HPC margins can exceed 80%. Companies like Bitdeer and HIVE are adapting by vertically integrating and leveraging low-cost, stranded energy sources to boost efficiency and survivability. As block rewards decline, only the most efficient miners with the best sites and energy sourcing are expected to endure. The diminishing block rewards are anticipated to have limited impact on Bitcoin’s price, as the supply limit has long been known and miners now hold a small portion of the circulating BTC. Most selling pressure will come from newly mined coins, not long-term holders.
