Bitcoin miners are expanding in advance of a major event

The next Bitcoin halving is expected to take place in April 2024. After that, miners only earn half from mining block on the blockchain. In order to remain competitive, miners are already significantly expanding their production capacities.

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Bitcoin halving causes uncertainty

The next Bitcoin halving is now less than 20,000 blocks away. That would be about 138 days. After that, it will be much more difficult for the miners to make a profit from their work – with the same prices, this will only be half as high as it is now. According to some analysts, the halving will mark a difficult time for miners. The American investment bank JP Morgan assumes that many miners will not survive this time.

Others expect the additional shortage to lead to huge price increases. For example, Dutch analyst PlanB believes that the period of lower prices is long over and the price will continue to rise in the run-up to the halving.

miners are making enormous expansions

But TheMinerMag is much more optimistic in a research report. A dozen listed mining companies have placed orders for it new ASIC mining hardware. In total, the hardware ordered is said to be worth around $1.2 billion; in the last two months alone, hardware worth around $750 million was ordered.

The orders must add more than 70 exahash per second (EH/s) of capacity to the network. Part of it has already been paid for, part of it has to be installed next year.

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Miners also expanded their locations and other equipment in the first three quarters of 2023. This cost them a total of $747 million, according to TheMinerMag.

Riot Platforms is the fastest growing

By far the biggest announcement of last year came from Riot Platforms, which placed an order for an 18 EH/s expansion. This announcement is from earlier this week. Riot’s first machines are expected to arrive early next year and are part of a years-long expansion plan. According to the researchers, the next largest order also comes from Riot, which placed an order for 7.6 EH/s in June.

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