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Bitcoin Miners Facing Double Whammy of Reward Cuts After Plunge

March 13, 2020, 11:27 AM

Companies whose computers make the Bitcoin network operational are facing deep cuts to profits.

With Bitcoin’s price down almost 40% this month to $5,350, so-called miners whose computers provide a third of all the power for the network, have gone into the red, said Chris Bendiksen, head of research at digital-asset manager CoinShares. The decline couldn’t have come at a worse time. In May, rewards in the form of new coins issued to miners will automatically drop in half, further exacerbating losses unless the price rallies.

For years now, such regularly scheduled Bitcoin halvenings, or halvings, have been looked forward ...