Bitcoin Miners Face Adapt or Perish Scenario as Halving Approaches in Under 60 Days

**Data indicates that we’re 96% through the journey to the next Bitcoin halving event, with under two months remaining until the reward for mining a block is reduced from 6.25 to 3.125 bitcoins. Although it’s still premature to pinpoint the precise date—given the average ten-minute interval between blocks—the event is anticipated to take place in about 57 days.** ## Bitcoin Halving in Under 60 Days Forces Miners Into Strategic Corner As we edge closer to Bitcoin’s fourth halving, fewer than 8,316 blocks remain before the mining incentive is slashed in half. The crypto community is abuzz on various social platforms, eagerly exchanging updates and mining data. For those unfamiliar, the halving process is a fundamental part of Bitcoin’s design, halving the block reward every 210,000 blocks. This mechanism is set to ensure that BTC’s total supply gradually approaches, but crucially never exceeds, the 21 million cap, thereby embedding scarcity directly into the protocol. The countdown to the halving now stands at 57 days, positioning the anticipated event to land on or around April 21, 2024. As we approach this milestone, current data shows that miners continue to liquidate their BTC holdings. This preemptive selling by miners, as we head into the fourth halving, indicates a variety of strategies: some may be gathering funds, others are likely addressing operational expenses, investing in technological advancements, or capitalizing on current market values. This behavior isn’t new; miners have traditionally sold off BTC a few months before past halvings to secure the necessary finances for equipment upgrades and to brace for the impending decrease in block rewards. Over the last six months, miners have been aggressively acquiring tens of thousands of new machines. For instance, on Thursday, Hive Digital announced its acquisition of 1,000 next-generation S21 Bitmain bitcoin miners, enhancing their arsenal by replacing older application-specific integrated circuit (ASIC) models. Currently, the daily expected value for each petahash per second (PH/s) of hashing capacity stands at $81. Should the halving event cut block rewards in half and bitcoin’s market price remains constant, the daily value derived from each PH/s of hashing power would drop to approximately $40. This anticipated reduction in profitability is the driving force behind the surge in purchases and pre-orders of mining equipment as the halving event draws near. Operations gearing up for the upgrade are well aware of the critical stakes involved, recognizing that survival hinges on their preparedness. The impending reward reduction poses a significant threat, capable of undermining any business that hasn’t adequately braced for this severe shift. As the halving event looms, the Bitcoin community braces for a pivotal shift, underscoring the adapt-or-perish reality facing miners. The strategic liquidation and acquisition frenzy highlights a sector on the cusp of transformation. With survival as the driving force, the narrative may extend beyond mere preparation. Source : Bitcoin News by Jamie Redman / Feb 23, 2024