Crypto News- Bitcoin miners are capitalizing on the current rally by adding new mining rigs ahead of the upcoming halving in April 2024. JPMorgan analysts note that the hash rate, a measure of mining power on the Bitcoin network, has reached record highs in recent months.
Mining Surge: Bitcoin Halving Drives Hashrate to Unprecedented Levels
As Bitcoin’s value has surged 37% to around $37,000 in the past month, miners have invested in new equipment, causing the 30-day average of miner revenues to reach an 18-month high of $32.5 billion on Nov. 11. The algorithm governing Bitcoin adjusts mining difficulty based on the average time it takes to solve the previous 2,016 blocks. Miners strategically acquire machines with lower power consumption per hash to optimize profitability. They also seek locations with inexpensive electricity to enhance their profit margins for each successfully mined block.
The current earnings for miners stand at $81 per petahash per second, representing an $11 increase compared to the start of November but still lower than the $127 earned in May.
As the April 2024 Bitcoin halving approaches, there’s a surge in mining activity as miners capitalize on the current rally. Hashrate, indicating the network’s mining power, has hit record highs, driven by miners adding new rigs. The upcoming halving, reducing the block reward from 6.25 to 3.125 Bitcoin, prompts miners to invest in more efficient equipment. However, this may lead to the consolidation of the mining industry, favoring larger players with economies of scale and cheaper electricity. Analysts predict that smaller miners with higher operational costs may struggle, potentially leading to increased centralization in the mining sector.