Mining
Bitcoin Miners Struggle Amid Network Halving and Rising Costs
Saturday. August 24 at 9:00 AM
1 min. readBitcoin miners are facing challenges in maintaining profits due to the recent Bitcoin network halving and increasing power costs, as reported by JPMorgan. The second quarter of 2023 marked a significant period for miners as they dealt with the effects of the 4th Bitcoin halving event, resulting in reduced daily revenue opportunities and lower margins. Some miners, like Riot Platforms and Cleanspark, acquired facilities to boost their hashrate and power capacity, while others focused on greenfield opportunities to minimize immediate capital requirements. Despite issuing $1.2 billion in equity collectively, the five covered miners saw a 28% decrease in Bitcoin mined in Q2. CleanSpark gained market share with significant capital expenditure, while Marathon Digital Holdings remained a top miner. Post-halving, miners are exploring AI applications and investing in advanced mining equipment to adapt to industry changes.