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Bitcoin Hash Rate Dips Amidst Post-Halving ASIC Shutdown

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Bitcoin Hash Rate Dips Amidst Post-Halving ASIC Shutdown

Following the fourth Bitcoin halving, many Bitcoin mining firms have decided to shut down unprofitable mining rigs, resulting in a decline in the Bitcoin hash rate. According to blockchain.com data, the hash rate dropped to its lowest level in over two months at 575 exahash per second (EH/s) on May 10, but has since slightly recovered to 586 EH/s. James Butterfill, the head of research at CoinShares, explained that the drop was due to miners turning off unprofitable rigs.

This decrease in hash rate was predicted in a report by CoinShares on April 19, which also expects the hash rate to increase during the next year. After the halving, the report suggests that the hash rate could fall by up to 10% as miners shut down unprofitable mining rigs. The report highlights the need for miners to optimize energy costs, increase mining efficiency, and secure favorable hardware procurement terms to mitigate these challenges.

According to Nazar Khan, the co-founder and COO of TeraWulf, only smaller mining operations with less energy-efficient equipment will face challenges after the 2024 halving. In an interview with , Khan stated that companies with quality infrastructure that can deliver low-cost power still have a valuable asset in Bitcoin despite decreased block rewards. TeraWulf, the eighth largest Bitcoin mining company globally worth over $670 million, plans to expand its mining operations despite the halving.

The profitability of mining operations largely depends on the cost of electricity. Older ASIC models like the S19 XP and M50S++ are operating at a loss when electricity costs exceed $0.09/kWh. Hashrate index suggests that these models will struggle to be profitable if electricity costs rise above $0.08/kWh, while the S19j Pro+, j Pros, and M30S++ will face difficulties at prices ranging from $0.06 to $0.07/kWh.

The decline in the Bitcoin hash rate can be attributed to miners turning off unprofitable rigs after the fourth Bitcoin halving. While some mining operations may face challenges, those with efficient infrastructure and low-cost power have a valuable asset in Bitcoin. The profitability of mining operations depends on managing electricity costs, optimizing mining efficiency, and securing favorable hardware procurement terms.

11 thoughts on “Bitcoin Hash Rate Dips Amidst Post-Halving ASIC Shutdown

  1. The report by CoinShares was incredibly insightful. It’s great to have experts who can predict these developments! 👏🌟

  2. The halving is taking its toll on miners Unprofitable rigs being turned off is causing a decline in the hash rate. Will they be able to recover?

  3. The profitability of mining operations really does depend on a combination of factors. It’s a complex game, but those who figure it out have a valuable asset in Bitcoin!

  4. Optimizing mining efficiency is definitely a smart move. It’s all about maximizing those earnings and staying ahead of the game!

  5. The decline in the hash rate was predicted, but it’s reassuring to see that it’s not a long-term problem. The future looks bright for Bitcoin mining!

  6. Mining efficiency is key, but still a tough market Unprofitable rigs are being turned off, making mining operations even more challenging.

  7. It’s great to see companies like TeraWulf thriving despite the halving. They’re a true inspiration to the industry!

  8. Whoa, that’s a significant drop The hash rate hitting its lowest level in over two months? That’s not good news for Bitcoin mining.

  9. Lowering electricity costs is a game-changer for mining operations. It’s all about finding that sweet spot to boost profitability!

  10. A decline in the hash rate was predicted, but it’s never a good sign Bitcoin miners facing challenges as they turn off unprofitable rigs.

  11. This is why Bitcoin mining is so volatile Unprofitable rigs shutting down is bad news for the hash rate.

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