Bitcoin miners are enjoying high returns. The recent rally in the price of the leading crypto saw the mining business come out of the doldrums.
Now, bitcoin mining firms are racing to make as much profit as possible before the ‘halving’ event that will see their mining rewards reduce by 50%.
Scheduled for April of the next year, the halving event is aimed at slowing down the Bitcoin mining process, as the token’s supply is limited to 21 million out of which 19 million have been mined already.
According to analysts, bitcoin miners are plugging in rigs rather urgently before the halving happens, which is evident from the hashrate of Bitcoin.
This refers to the computational power required for mining bitcoin. Data from Blockchain.com shows that it has climbed to an all-time high.
It indicates that a greater amount of speed and power is being used by miners for solving puzzles and getting rewarded in the form of Bitcoin.
Analysts have revealed that there has been a record rise in the hash rate for 11 months in a row. The previous month recorded a historic rise in the hash rate.
In the past month, the price of Bitcoin has made gains of nearly 37% as it has reached a value of $37,000.
After trading listlessly for months, the surge in Bitcoin’s price prompted miners to once more start their mining activities.
This year has seen a steady improvement in the monthly average revenue of Bitcoin miners. Data from blockchain.com shows that on November 11th, the revenue rose to $32.46 million, the highest in 18 months.
However, it should be noted that bitcoin mining is still not as profitable as it had been back in 2021 when the market was at its peak.
Since there are still six months remaining until the halving occurs, bitcoin miners are trying to maintain their margins amidst the intense competition.
Every time a halving occurs, miners are forced to compete to ensure they can survive in the market.
Data shows that after every halving, the price of Bitcoin has surged. The first halving took place back in 2012, after which the pioneer crypto token saw its price go from $12 to $126.
Likewise, the second halving took place in 2016 and the price had gone from $654 to $1,000 in a matter of seven months.
In the same duration, the price of Bitcoin rose from $8,570 to $18,040 in the halving that occurred in 2020.
This latest halving has reduced the rewards of bitcoin miners to 6.25 tokens per block and the one in April will further reduce them to 3.125. The value of a single-block reward is currently $231,250.
Analysts have said that many mining companies are boosting their hash power by upgrading their equipment to compete.
Some of these companies are shifting their operations to countries where they can get affordable energy prices, particularly in countries in Central America.