Originally published on: October 29, 2024
In the wake of Bitcoin’s recent halving event, miners are adopting innovative strategies to reduce expenses and maximize profits. As revealed in a report by CoinShares, the cryptocurrency asset manager, the industry is increasingly turning to artificial intelligence to navigate the challenges posed by the halving.
The halving, which occurred in April, slashed mining rewards from 6.25 BTC to 3.125 BTC per block, significantly raising the costs associated with mining Bitcoin. This has led to a wide range of outcomes among miners, with some struggling to stay afloat in the face of declining revenues.
According to CoinShares, the current average cost to produce one Bitcoin stands at around $49,500, up from $47,200 in the previous quarter. Despite these challenges, there are a few standout miners, such as Cormint and TeraWulf, who have managed to keep their electricity costs as low as $15,000 and $19,000 per BTC mined, respectively.
In response to the shifting landscape of Bitcoin mining, some miners are diversifying their income streams by integrating AI technologies into their operations. One example is Hive, which recently invested $66 million in Nvidia GPUs for non-mining purposes.
Additionally, there is a trend of consolidation within the mining industry, with cash-rich miners like Riot Platforms and Cleanspark acquiring smaller players to boost their hashing power and reduce costs. This shift towards mergers and acquisitions is seen as a strategic response to the evolving challenges faced by Bitcoin miners in the post-halving era.
With the industry in a state of flux, it is clear that miners need to adapt and innovate to remain competitive in the ever-changing world of Bitcoin mining. By embracing AI and exploring new business models, miners can not only survive but thrive in this challenging environment.
