Gemini’s eOTC Platform Helps Miners Weather Tough Environment

Bitcoin miners have experienced a volatile year.

On April 21, the halving event cut the block subsidy by 50%, from 6.250 to 3.125 bitcoin. Meanwhile, USD-denominated network transaction fees have fallen precipitously, while network hash rate has increased sharply since the start of the year. As a result, post-halving hash price – a measure of miner revenue per unit computed – fell to an all-time low of $0.0459 per Th/s in late June, before recovering somewhat in July.

In light of the backdrop, miners have responded by selling reserves, which have dwindled to 1.9 million bitcoin as of June 19, the lowest mark in 14 years. Meanwhile, larger miners are conserving cash by funding expenditures through M&A activity, as Hut 8 and US BTC Corp did in late 2023.

Going forward, we expect this behavior to continue. Miners have always required capital, but this is especially true when USD-denominated revenues decline.

As such, miners from large public firms to smaller companies have turned to Gemini’s eOTC platform to help liquidate BTC holdings to sustain their balance sheet. Let’s take a look at why:

Gemini’s eOTC Platform Helps Miners Remain Profitable

Gemini's electronic Over-the-Counter (eOTC) trading desk is the perfect tool for bitcoin miners seeking fast liquidity. With fast trade execution, the ability to handle large transactions, limited spreads, optimal execution, and a secure trading environment, eOTC was designed with the needs of miners in mind.

To maintain profitability, miners may need to quickly convert their bitcoin into fiat currency or other digital assets to cover their ongoing expenses. They need to be able to liquidate their holdings quickly, but crypto is inherently volatile. Market volatility can impact profitability, and delays in converting bitcoin can hurt the bottom line.

By providing on-demand liquidity, Gemini eOTC ensures miners can manage their cash flow, invest in new equipment, and cover operational costs without delay.

Other Benefits of eOTC for Bitcoin Miners

• Efficient net settlement: Gemini eOTC provides for an intraday trading credit, maximizing capital efficiency and trading flexibility. Trades are settled daily at a predetermined schedule in a single net settlement ticket, replenishing trading credit upon completion, all within Gemini’s secure ecosystem.

• Privacy and security: Gemini is a full-reserve exchange and qualified custodian under the New York Banking Law, ensuring your assets are confidential and secure. GTC is also licensed by the New York State Department of Financial Services (NYDFS) and is SOC 2 Type II compliant.

• Competitive pricing: The eOTC desk offers competitive pricing, helping miners maximize their returns on large volume trades.

Want to learn more about Gemini eOTC for bitcoin miners?

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Onward and Upward!
Team Gemini

*This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.