What is moving Bitcoin miners?

What is moving Bitcoin miners?

asalam alaikum everyone I am on the road
right now as you can probably tell uh
coming to you live from my hotel room uh
if you can hear me uh with this setup
that I’ve cobbled together uh just uh
leave a uh comment or a thumbs up or um
if you can’t hear me uh complain in the
comments and we’ll see if we can adjust
our audio so that you can hear
me um if I don’t hear anything I’ll just
get started assume that you uh can hear
me okay good thank you that’s me
appreciate it um so we’re going to talk
about what is moving Bitcoin miners
they’ve been moving in a big way we’re
going to try and figure out why this is
and uh also um it uh what we learned in
today’s live inshallah will help us
interpret uh future movements for our
Bitcoin mining stocks uh so without
further Ado let’s get started uh so uh
not Financial advice be sure to do your
own due diligence before you make any
investing
decisions um so uh obviously the first
thing that’s going to affect our Bitcoin
mining stocks is the uh price of Bitcoin
but you already knew that right however
if you look at the price of Bitcoin as
of late yes we’ve recovered from the low
60s we’re now approaching
67,000 um but uh you know we’ve been at
these levels before so why is it that
Bitcoin miners have suddenly
researched well the black subsidy is
another um thing that impacts the
Bitcoin miners so the Bitcoin miners
live off of the Bitcoin that they mine
so obviously the price of the asset that
they mine going up helps but also the
amount or the number of Bitcoin that
they’re rewarded per additional block uh
that they mine is a big factor and we’ve
been talking about this
factor for a while now with the having
which is now behind us so recently we
experienced uh the uh fourth having uh
in the life of Bitcoin so we went from
6.25 to
3.125 uh Bitcoin rewarded to bitcoin
miners um
every uh um and and this bit and this
having happens every uh four years and
uh this reward is per block mind of
coin um and uh the other uh element that
is impacting uh the uh Bitcoin Miners
and their profitability is the
difficulty that mining an additional
block actually uh entails so the Bitcoin
price first factor and then okay how
many Bitcoin uh is being rewarded per
block now you don’t really have to keep
that close attention to that because it
only changes every four years as we
mentioned but also the difficulty how
much the energy and compute do you need
to spend to mine the next block in the
uh Bitcoin uh blockchain and that has
been basically increasing with time with
very few interruptions so uh the the
cost to mine um every additional Bitcoin
block is going up with time which means
that the security of the network becomes
tighter because it’s harder to attack
but it also means that
the that the uh amount or uh the cost uh
for Bitcoin miners is increasing with
time as well so this is also something
that you have to uh factor in when
you’re interpreting the uh price
movements of Bitcoin
miners the
um other factor which is uh I think
perhaps lost on many uh not given as
much credit as it should be given but is
going to increasingly play a larger and
larger role in the performance of these
Bitcoin miners are the transaction fees
that Bitcoin miners collect uh per uh
additional uh block uh that is
mined and
these transaction fees are uh
transactions or fees collected from
transactions such as sending Bitcoin uh
but also from things like uh runes and
ordinals which are sort of a new
phenomenon for Bitcoin and uh these fees
have spiked in a big way uh post having
and uh they’ve since come down from the
initial Spike that we experience but
they’re still at elevated levels and
this has really helped keep uh the
revenue uh or and the hash price uh
which is the Daily Mining Revenue
divided by hash rate so how much uh
money does the uh Bitcoin do the Bitcoin
miners earn per day uh divided by how
much compute uh they actually spend to
earn that money that comes uh that term
uh the
a result of that equation is known as
the hash price so this has actually
fallen from you know around 100 between
100 and 110 H it’s Fallen to between 80
and 90 it peaked when the transaction
fees uh peaked uh so it reached close to
180 uh but now it’s between 80 and 90 so
the having really didn’t have a having
effect on the Bitcoin miners Revenue and
that’s because transaction fees have
kept their revenue close to what it was
uh prior to the having so this is very
good news not many people were
anticipating it and um this has caused a
lot more bullishness around Bitcoin
Miners and their stocks another way to
look at this if you look at the uh
Bitcoin minor Revenue daily uh so you
can see that we really didn’t see that
big of a dip in the total Bitcoin minor
Revenue post having now which happened
this month so uh and why uh you can see
at the bottom uh the bottom right of
this chart you can see this sort of
black um part of the chart that is
spiking and that represents the
transaction fees that the Bitcoin miners
were collecting and it really
compensated in a big way for the uh
decrease in the subsidy that these
Bitcoin miners were collecting uh so now
we understand um you know why Bitcoin
Miners and their stocks are moving as
they have been as of late there is still
a frustrating factor with regards to
investing in Bitcoin Miners and that
frustrating Factor has to do with the
dilution that these miners are
constantly uh subjecting their
shareholders to uh because as I
mentioned the difficulty of mining is
always increasing so the miners have to
always be investing in expanding their
mining capacity and in order to raise
money to make these additional
Investments they have to sell stock on
the open market and that’s why even if
all the elements that I mentioned align
like you want them to
align sometimes your favorite Bitcoin
minor may not perform as well as you
would like it because of the dilution
that they are experiencing so additional
shares in that minor are being issued in
order to raise more money so here we
have um a snapshot of the sort of at the
Market uh dilution uh vehicle that I
energy has and this was last updated
March 21st uh so they started off with
500 million uh that’s what they uh
initially had in terms of authorization
to issue new shares as of last month so
they had around 238 million left in that
500 million that they could uh raise
from the open market right now based on
their increase in share price I estimate
that they have less than 100 million
left uh in this at the market
capacity and
so the the hope is that when this at the
market capacity
ends there isn’t like what we had in
clsk immediately the announcement of
another rise another dilution event we
have a period where the there’s no
announcements of additional dilution and
also there isn’t any dilution happening
and that period is when the stock price
I think can catch up with its
fundamental value which I think uh right
now is well above where it
sits um
so uh and this is another reason why
it’s important when you’re investing in
Bitcoin miners that when you have a
minor in your portfolio that has gone on
a run to take profits from that minor
because it’s only a matter of time
before another dilution event is
announced before the company is selling
additional shares on the market um
because the alternative to that is the
stagnating uh hash power and uh the um
share of that min in the total Bitcoin
minor Revenue decreasing with time
because the hash power of the overall
system is increasing with time so
stagnation means you’re dying as a
Bitcoin miner so it’s it’s really
something that you know every Bitcoin
miner has to do and this is why as
investors you really have to have your
tap dancing shoes on go from the miners
that are close to finishing their
dilution to other miners
um so you want to go into those uh
Miners and you know take profits from
miners who you think are about to start
a dilution cycle uh so uh I just wanted
to uh go over that because I know that
um you know many people may be uh
looking at their uh share price and you
know of you know the minor that they’re
invested in and perhaps are wondering or
well why isn’t my minor going up as much
as other others well there are all all
sorts of factors that you have to take
into consideration uh do become a pif
member to uh follow our trades move for
move and know you know when we switch
from uh minor to minor um and also I see
all of our portfolio Holdings and what
we invest in win um
Tesla right now reported earning and we
had a pretty long discussion in our
Discord group about you know the charts
saying that the price was you know GNA
still go down and um you know a lot of
pessimism about the near term and I
think as a community we kind of you know
agreed that there was
uh it was a better strategy to kind of
stick with with what we know the
fundamental value uh of our holding is
as opposed to trying to predict the
short-term movements of our stock and I
think at least the initial reaction of
the market to earnings is a positive one
so we’d really love to have you as part
of our uh Community uh of Halal
conscious investors trying to do good uh
and do well uh so consider uh becoming
part of
PF uh with that I’ll take question
questions Alum nice to see you
Rashad a word about Tesla q1 result
inshallah we’ll go over that in detail
definitely I’ll be listening to the
earnings call and letting you know what
I
think how can I buy shares from miners
well they’re in um the certainly the
public miners are listed in most uh
brokerages so you can just look up their
ticker symbol and find them there
uh so uh in terms of
applications so I use M1 Finance but
it’s only available in the United States
my my second pick for international
investors would be interactive
brokers um they have a pretty um solid
reputation their interface isn’t that
easy to navigate uh it takes a while to
uh figure it out but once you do I think
they’re quite good and they also have a
very broad selection
of assets that you can invest in which
is another perk so with that thank you
all for coming leave a like if you
enjoyed this live and until next time
make sure to take care of yourself
assalam alikum and peace be upon you all

Why are bitcoin miners up post halving? what are the different factors impacting this price rise? How can we understand day to day price movements?

These topics and more will be addressed in today’s live.

Nothing in this video is meant to be personalized financial advice. Make sure to do your due diligence before making any investment decisions.

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