Shift

In a significant trend within the bitcoin mining sector, the resurgence of private miners is altering the competitive landscape, especially as the <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/">halving</a> event draws near. This development points to a strategic recalibration among miners in anticipation of the upcoming halving, according to <a href="https://theminermag.com/news/2024-03-21/miner-weekly-private-bitcoin-mining-share/">TheMinerMag</a>. 
<figure class="wp-block-image">
 <img src="https://lh7-us.googleusercontent.com/CvW_CP--BNWXbsgI-PNRtODx98c7H1s4XHGUvZ3XPBVFbFfMEhUSHVHGbi0ITzHe3wRn4CuYRoQ2v-CcHn9vSSv69eiHJx8yUdOnq0Ql6AungOxZQTyvBzVNomSdLd8_y8IqDnJQRv37IUFv_jNuaUA" alt="">
</figure> 
The shift is evident in the bitcoin network's monthly average <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/">hashrate</a>, which has surged past 600 EH/s, juxtaposed against a declining <a href="https://ultramining.com/news/en/bitcoin-miners-set-for-a-tough-ride-as-2024-halving-nears-jp-morgan/">production</a> share from publicly traded <a href="https://ultramining.com/news/en/blockstream-aims-for-bitcoin-profit-with-mining-rig-investment-ahead-of-2024-halving/">mining companies</a>. Analysis indicates that while these companies accounted for nearly 23.28% of bitcoin's block rewards in September 2023, this figure dipped to 19.7% by February 2024, despite an overall increase in hashrate. This pattern suggests a growing influence of private mining operations, which could be reactivating older equipment to capitalize on the current <a href="https://ultramining.com/news/en/bitcoins-rebound-above-30k-boosts-hashprice-a-4-leap-in-24-hours/">hashprice</a> dynamics. 
<a href="https://ultramining.com/news/en/marathon-digital-to-boost-energy-efficiency-with-s19-xp-miners/">Marathon</a> Digital, a leading figure among publicly traded miners, experienced downtime that further skewed these figures. However, the broader narrative remains focused on the private sector's strategic positioning ahead of the halving. The spike in bitcoin's hashprice, from $60/PH/s to a fluctuating level around $100/PH/s since January, has rendered even outdated mining rigs like the M21S marginally profitable, encouraging more private operations to re-enter the fray. 
This resurgence is not without its expiry date; the halving is set to render older <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/">mining equipment</a> obsolete unless there's an unprecedented rise in hashprice. With bitcoin's average hashrate climbing from around 450 EH/s in October 2023 to 600 EH/s in March 2024, a significant portion of this increase is attributed to the older equipment being brought online. Post-halving, the industry may witness a hashrate correction, potentially dipping to the lower 500 EH/s range, reflecting the phasing out of less efficient mining rigs.

Private Miners’ Resurgence Pre-Halving Signals Industry Shift

Ultramining_Eng

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