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Bitcoin Miners Gear Up as Halving Looms in 2024

In anticipation of the 2024 Bitcoin (BTC) halving, Bitcoin miners are accelerating their efforts to secure profits, with the hashrate hitting an all-time high, signaling a surge in mining power.

The recent surge in BTC prices has breathed new life into the mining industry. Mining companies, spurred by this rally, are now in a frenzy to capitalize on profits before the upcoming “halving” event reduces mining rewards by half.

According to data, the hashrate, or amount of power required to mine Bitcoin, has reached an all-time high. This means miners have to use more power and speed to solve complex mathematical problems to earn new coins.

Bitcoin hash rate annual chart Source:

Bitcoin miners achieve yearly ATH with $44 million in daily earnings

Scheduled for April 2024, the impending halving aims to regulate the pace of Bitcoin issuance, leading to a notable scarcity in supply, highlighted in Glassnode’s recent report, with ‘available supply’ reaching historic lows compared to ‘ supply storage’.

On November 12th, the Bitcoin mining community’s earnings reached a yearly high in block rewards and transaction fees. Bitcoin mining, accomplished through advanced mining rigs, garners revenue by validating transactions and forming new blocks.

Miners currently earn 6.25 BTC per successful block, along with transaction fees. Notably, daily Bitcoin mining rewards surpassed $44 million for the first time in 2023, a level reminiscent of April 2022, as per data. However, as of writing, the number has dropped to $34.9 million.

Bitcoin yearly mining revenue chart. Source:

Multiple factors contributed to a decline in revenue for Bitcoin miners worldwide between April 2022 and November 2023. 

These included an extended bearish market, diminished investor confidence due to scams and ecosystem failures, and regulatory barriers hindering free Bitcoin transactions for investors.

Marathon Digital Holdings, a key player in Bitcoin mining, reported a remarkable 670% year-over-year revenue spike in the third quarter of 2023. This surge accompanied a nearly five-fold rise in Bitcoin production for the company.

Bitcoin halving opportunity

Historically, Bitcoin prices have seen exponential spikes post-halving events, and analysts expect a similar trend this time, following the pattern observed after previous halvings in 2012, 2016, and 2020.

Amid this, miners are strategizing to maintain profitability, with some exploring geographical shifts to regions with more favourable energy costs and crypto-friendly regulations.

While revenues have seen an upward trajectory this year, mining profitability still trails behind its 2021 peak due to the intensive energy demands of the process.

With the halving on the horizon, miners are gearing up, upgrading equipment, and enhancing their hashrate capabilities to stay competitive in this ever-evolving landscape. The industry anticipates further shifts in mining practices and market reactions, offering a transformative moment for Bitcoin’s ecosystem.

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