Post-Halving - Mining Rewards

A few weeks ago we experienced the Bitcoin Halving... This is a once in 4 years event. 

As you probably know, the mining rewards get halved after the Bitcoin Halving. As a result, a lot of older machines are not able to compete anymore. Those will be forced to shut down. 

The goods news is that the more miners have to be turned off, the less competition there is and the more BTC will be earned by miners that can still compete. 

In both our facilities in Ethiopia and Siberia we have an energy rate that is significantly lower than the rest of the world. This enables us to maximize our profits as miners and to keep our equipment on for as long as possible. 

The market is still processing the Bitcoin Halving. Because most miners are paying their energy bill on a monthly or quarterly basis, many still need to make a decision to keep their machines on or to turn them off.

We have experienced the first wave of miners that choose to shut down their equipment already.

As a result, the total hashrate dropped with around 15-20% in the past few days. 

Now, for those of you that have your machines on, you'll see a slight increase in your BTC payouts. compared to earlier last month.

In the short term, we expect more older machines to disappear from the network. The period after the halving is always a bit strange as the market needs to find a new equilibrium. But, make sure that you don't lose sight of the bigger picture. If history repeats itself again, we are getting ready for the parabolic run up. That is when the miners make most of their profits.

Hopefully you now have a better understanding of the current market dynamics.