- Recent data reveals that 40% of Bitcoin mining occurs in the United States.
- The upcoming Bitcoin halving event, set for April, is expected to impact U.S. miners, cutting their revenue in half.
- Industry experts predict a shift, with efficient and profitable miners likely to weather the storm better than their less capable counterparts.
- Bitdeer, a mining service provider with three facilities in the U.S., emphasizes the importance of low electricity costs for maintaining profitability post-halving.
- The Bitcoin network’s hash rate has steadily risen, but the reduction in mining rewards coupled with high energy costs may lead to some miners going offline after the halving.
Efficiency Key Amid Bitcoin Halving
The impending Bitcoin halving event scheduled for April is casting a shadow on the mining landscape, particularly in the United States, where 40% of Bitcoin mining currently takes place. Industry experts, including Raphael Zagury, CIO at Swan Bitcoin, anticipate a significant impact on U.S. miners as the event slashes the mining reward from 6.25 BTC to 3.125 BTC. This reduction will act as a filter, distinguishing between efficient, profitable miners and those less capable.
Strategic Preparation by Bitdeer
Bitdeer, a publicly traded mining service provider with a global presence, has been proactive in preparing for halving events, considering them one of the most predictable occurrences in the crypto industry. Haris Basit, CSO at Bitdeer, underscores the importance of low electricity costs for profitability. Bitdeer regularly publishes its power costs, aiming to maintain one of the lowest costs of electricity in the industry. The impact of the halving on its U.S. operations, with three mining facilities, will hinge on the Bitcoin price at the time of the event.
Hash Rate Surge vs. Halving Challenges
While the Bitcoin network’s hash rate has experienced a steady rise, reaching all-time highs in January 2024, the impending halving poses challenges. Jamie McAvity, CEO at Cormint Data Systems, a Texas-based mining company, notes that mining computers’ efficiency between 30 and 40 joules per terahash could face disproportionate effects. The combination of reduced block rewards and high energy usage may lead to some miners going offline, especially those with the highest operational costs.