Bitcoin Miners Pace Up Energy Consumption by Over 61% Ahead of Halving

Bitcoin miners have hoped for a speedy mining rate ahead of the crucial halving. According to a Bloomberg report, the use of energy by Bitcoin miners has reached a record level in the past month. The rise in mining rate also coincides with the supply shock has has kept BTC prices up and soaring.

Bitcoin Miners Use Record Level of Energy

Bloomberg highlights that in anticipation of a code update that could jeopardize revenue streams, Bitcoin miners are back in survival mode after a near-death experience during the most recent crypto winter. They are consuming energy at a record pace.

According to a Coin Metrics estimate, miners used a record 19.6 gigawatts of power last month, up from 12.1 gigawatts during the same period in 2023.  According to CoinGape calculation, the number shows a surge of over 61%.

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Mining Activity Surge Results in Equipment Demand

Bloomberg reports also show that according to data provided by TheMinerMag based on public filings, 13 of the major mining businesses have ordered specialist computers worth over $1 billion since February 2023. Leading the group in rig spending were CleanSpark Inc. and Riot Platforms Inc., with $473 million and $415 million spent on them, respectively.

The rise in the demand for equipment by Bitcoin miners stems from the higher demand that has persisted since the launch of Bitcoin ETFs. The constant buying has also resulted in a supply shock, which has created a disparity of around 20% between the demand and supply of Bitcoin.

How will Halving Affect Bitcoin Miners?

In the world of cryptocurrencies, halving is a quadrennial occurrence that halves the amount of new coins that are put into circulation. Consequently, block incentives for miners are cut in half. In general, bitcoin halving aids in controlling supply and demand so that a bitcoin’s scarcity might raise its value. Generally, Bitcoin halving creates a demand-supply relation where mining Bitcoins at a steady rate becomes increasingly important. In such a scenario, the hash rate post-halving could see a surge given the constant ask for BTC. Investors are also more inclined to pay exorbitant prices for a small portion of asset exposure when the original coin is scarce.