Bitcoin mining is a delicate balance of these three factors: equipment efficiency, electricity costs, and bitcoin price. Miners often have control over the first two factors but they are at the mercy of the dominant cyptocurrency’s volatility. Fortunately for miners, there’s one event that can help them stay profitable.
The bitcoin halving is a historically bullish event. The first time block rewards were halved was in 2012. Prices skyrocketed by 7,976 percent a year later. The second halving in 2016 drove the cryptocurrency to a 2,902 percent growth by the end of 2017. The third halving will take place in six months. It appears that Canaan Creative is positioning for the possible explosion of bitcoin by becoming a publicly-traded company later this month.
The Chinese-based mining giant certainly picked an auspicious time to launch its IPO. Bitcoin is currently in a bull market while block mining difficulty is on a steady uptrend. This puts Canaan in a very good position to reap profits and increase its valuation in the coming months.