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As Bitcoin's price hits a record high, previously unprofitable Bitcoin miners are powering up their machines again, according to industry analysts, marking a significant turn in the cryptocurrency mining sector.
Surging BTC Prices Spur Revival of Older Mining Equipment, Record Hash Rates Achieved
According to Cointelegraph, these previously unprofitable Bitcoin miners may have contributed to the 14.7% increase in Bitcoin's hash rate since the beginning of 2024.
"Improved market conditions have encouraged miners who were previously unprofitable at lower hash price levels to come back online," said Nico Smid, founder of Digital Mining Solutions, in the firm's first quarter Bitcoin mining review, published on April 2.
The hash rate increase of Bitcoin has been significantly bolstered by the reactivation of older Bitcoin miners, following a similar trajectory to the cost of Bitcoin (BTC), which increased 56.8% in 2024 to $66,280 at the time of publication. This switch-on could have contributed to a 14.7% increase in Bitcoin hash rate since the beginning of 2024.
"This growth is equivalent to adding 375,000 Antminers S21 200 TH/s to the network."
The deployment of Bitmain S21s and other cutting-edge mining equipment contributed to Bitcoin hash rate growth during the first three months. On March 11, Bitcoin's hash rate peaked at 631 exahashes per second (EH/s) on a 7-day moving average, just a week after surpassing its all-time high of $68,990.
Miners Navigate New Highs and Approaching Halving with Cautious Optimism
Bitcoin reached a new all-time high of $73,738 three days later, on March 14, according to CoinGecko. Smid stated that miner revenues reached a new all-time high on March 10 despite a steady decline in transaction fees since the beginning of March.
"While this is beneficial for individuals seeking to send quick transactions, it presents a less favorable scenario for miners who have grown accustomed to high transaction fees over the past few months."
While old miners are restarting, the cost of application-specific integrated circuit (ASIC) machines remains stable as many Bitcoin miners postpone new investments as the halving event nears.
"Miners seem to be adopting a 'wait and see' approach as the halving event approaches," noted Smid, who cited an ASIC Jungle survey which found 65% of customers are postponing the purchase of new miners until after the halving.
The Bitcoin halving is scheduled for April 20, when block 840,000 is reached. At current prices, the event will reduce miner rewards from 6.25 BTC ($414,000) to 3.125 BTC ($212,000).
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