Post Bitcoin Halving: What now?

On May 11th, the highly anticipated Bitcoin Halving was executed successfully as block number 630,000 was mined. With that, the block reward was reduced from 12.5 BTC to 6.25 BTC. The halving occurs every 210,000 blocks (~4 years) in order to slow the rate of new coin issuance as the circulating supply of BTC approaches the pre-defined supply cap of 21 million coins. To date, ~18.3 million (~85%) of the total 21 million coins have been mined.

We have already started to see the impact of the reduced block reward as many of the less productive, previous generation machines have been taken offline since the halving. Network hashrate has decreased over 30% since the May 10th peak, and the block time has stretched from an average of 8.5 minutes per block on May 10th to 12.6 minutes on May 14. We believe this trend will continue in the coming weeks as a majority of old generation equipment is retired.

So, whether you are looking to get started in mining, replace unprofitable equipment or expand your fleet of hardware, here are some recommendations to consider.

  1. Secure new hardware ASAP: Post halving, the power and efficiency of the latest equipment is necessary to operate profitably and securing soon may even allow you to take advantage of the short-term improved profitability from the expected decline in difficulty.
  2. Time matters: Once you have the new equipment, getting the machines deployed quickly and maximizing uptime are critical. Whether due to not getting deployed yet, machine failure or facility issues, every second a machine is not mining is lost revenue.
  3. Protect your investment: New mining equipment is a huge investment. The management and care of the machines should not be entrusted to just anyone. Placing your equipment with a partner that has a track record of hosting at scale, has quality facilities with environments that are optimized for mining and has the technical team and capabilities to make sure your equipment performs over the long term is critical to getting the most out of your investment.

Contact Us today to learn how our preferred partnerships with hardware manufacturers, world class facilities, proprietary miner management and monitoring solutions platform and highly trained staff can help you maximize your ROI.