Originally published on: October 29, 2024
In a recent report by CoinShares, it has been revealed that Bitcoin miners are adapting to the challenges brought about by the network’s April halving event by cutting costs and integrating artificial intelligence into their operations. The varying outcomes among Bitcoin miners are a result of the increasing costs and complexities associated with mining BTC, as detailed in CoinShares’ Q3 mining report.
Following the halving event that occurs every four years, which saw mining rewards reduced from 6.25 BTC to 3.125 BTC per block, the cash costs of mining one Bitcoin have significantly risen. Despite this, the average cost of producing one Bitcoin remains profitable for most miners, with an estimated cost of $49,500 across all listed miners in Q2.
Standout miners like Cormint and TeraWulf have managed to keep their electricity costs per BTC mined at around $15,000 and $19,000, respectively, significantly lower than their competitors. This disparity in costs has led some miners to explore alternative revenue streams, including the integration of AI technologies into their operations.
The mining industry is witnessing a trend of diversification among companies, with some turning to mergers and acquisitions to streamline operations and reduce costs. Cash-rich miners like Riot Platforms and Cleanspark have been acquiring other miners to increase their hashrate and power pipeline, as highlighted in an August report by JPMorgan.
As Bitcoin miners navigate the evolving landscape of the industry, the integration of AI technologies and strategic business decisions are becoming crucial for maintaining profitability and sustainability. Stay informed on the latest trends and developments in the blockchain and crypto space by subscribing to our Crypto Biz newsletter for valuable insights and opportunities every Thursday.
