HUT - Bitcoin Miners In For A Rough Ride After Halving: Report | Benzinga
A new report predicts a substantial rise in production costs due to the halving, with electricity and overall production costs nearly doubling.
What Happened: The report by Coinshares estimates the average production cost per Bitcoin (CRYPTO: BTC) among listed mining companies is now approximately $53,000.
It forecasts the overall network hash rate to reach a record 700 Exahash by 2025.
However, it also predicts a potential drop of up to 10% as miners shut down unprofitable operations after the halving.
Rising Costs And The Halving Challenge
The report, spearheaded by James Butterfill, Head of Research at CoinShares, points out a critical upcoming challenge: the potential 10% drop in the hash rate due to the Bitcoin Halving.
With mining rewards reduced by half, miners could be forced to turn off less profitable ASICs, leading to a significant reevaluation of operational strategies.
“The halving will precipitate a substantial increase in electricity and overall production costs, ...