Although the Bitcoin Mining Difficulty fell by 15 percent last week, some mining competitors are upgrading as the halving approaches. The cards among the mining pools could be reshuffled.
The Bitcoin network stands or falls with the miners. Because the „miners“ of the digital gold make sure that everything goes according to plan – while complying with the proof-of-work mechanism, they place new blocks on the blockchain and irreversibly record the information in these blocks. For this they receive a reward of currently 12.5 BTC per block, in addition to transaction fees from Bitcoin users.
But this foundation has begun to crumble in recent weeks. With the collapse of the Bitcoin price, it was no longer profitable for some miners to mine new Bitcoin. This led to some miners taking their equipment off the grid. In addition, more BTCs were sold than came onto the market, reducing the Bitcoin Mining Difficulty by over 15 percent. However, there is no reason for concern here. On the one hand, the network remains stable despite the loss of some participants, and the market was also able to absorb the sales. On the other hand, existing players are strengthening their positions in return.
Hive strengthens Bitcoin mining activities
For example, the blockchain company HIVE announced on March 30th via press release that it had acquired a 30 megawatt crypto mine worth 4 million Canadian dollars. In order to cover the expenses, the company Cryptologic, which is to be sold, will be paid three-quarters with company shares. The rest of the payment will be in Canadian dollars. Frank Holmes, chairman of the board of HIVE, sees this as an expansion of the business area:
This acquisition provides us with an advanced Bitcoin mining farm ready to move into next-generation mining hardware, with access to one of the world’s low-cost power grids. …] In addition, the purchase gives us direct control over our destiny, as well as significant opportunities for expansion.
With this step, the company is increasing its own mining capacity and catching up with its competitors Bitmain & Co. The new mining farm will contain approximately 14,000 mining machines, according to official figures, bringing the total of 173 petahashes of Bitcoin mining power. This puts the mining farms in Quebec, Canada, in direct competition with mining farms in Texas, where electricity is similarly cheap. It turns out that despite a low Bitcoin price and to some extent declining mining activity, Bitcoin mining seems to be promising for some companies.
The timing for expanding Hive’s mining activities could hardly be better. Bitcoin Halving is scheduled for May. At this event the supply of new Bitcoins will be reduced from 12.5 to 6.25 BTC per successfully mined block. Until then, Hive still has the opportunity to mine as many „cheap“ Bitcoins as possible.