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As the much-anticipated Bitcoin halving event in late April approaches, outdated mining equipment is being relocated from the United States to areas with cheaper electricity, sparking an "electricity price war." The need to maintain profitability, due to reduced mining rewards and rising operational costs, is driving this migration.
According to FX168's newly launched halving schedule, there are only 24 days left until the Bitcoin halving cycle in April, when miner rewards will decrease from 6.25 to 3.125 bitcoins. Despite the reduced supply, the passage of a Bitcoin spot ETF in the United States stimulates demand, and the halving cycle is often seen as a bullish signal.
Bloomberg reported that about 6,000 aging Bitcoin mining machines in the United States will be retired and refurbished for resale overseas, especially in areas with lower energy costs.
Wholesaler SunnySide Digital is at the forefront of this movement, operating a 35,000-square-foot factory in Colorado Springs. The company is refurbishing aging equipment and reselling it to overseas buyers eager to leverage the mining industry in more cost-effective environments. They expect to receive and refurbish hundreds of thousands of units during the Bitcoin halving period.
SunnySide Digital CEO Taras Kulyk said, "This is a natural migration."
He pointed out that buyers of outdated machines tend to choose areas with the cheapest electricity. He has assisted in selling American computers to miners in countries such as Ethiopia, Tanzania, Paraguay, and Uruguay, emphasizing that the upcoming halving event is accelerating this trend.
Ethan Vera, Chief Operating Officer of Luxor Technology, estimates that 600,000 S19 series computers are being relocated from the United States to areas primarily in Africa and South America.
Jaran Mellerud, CEO of Hashlabs Mining, pointed out that although old machines may no longer be profitable in the United States after the halving, they can still generate returns if hosted in areas with lower electricity costs.
Publicly traded companies like Bit Digital choose to retain old equipment and use them to generate profits during periods of high Bitcoin prices. To prepare for the halving, global miners are investing in new hardware.
According to cryptocurrency mining researchers at TheMinerMag, major public Bitcoin mining companies have collectively ordered machines worth over $1 billion since February 2023. |
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Post time 8-4-2024 21:04:59