CleanSpark’s CEO Matthew Schultz warned in January that many mining companies would have difficulty staying afloat after the Bitcoin halving in April 2024.
Due to the halving, the reward for mining a block was reduced from 6.25 BTC to 3.125 BTC. This would increase the cost of mining BTC to approximately $62,276, according to Schultz.
Experts from Galaxy Digital predict a sharp decrease in activity among mining companies after the halving, causing the network’s hashrate to drop by 15-20%.
This is because companies facing financial difficulties will have to disconnect from the network, leading to the shutdown of costly and less efficient equipment such as Bitmain’s S9, Canaan’s A1066, and MicroBT’s M32.
Analysts estimate that only about half of the MicroBT M20 and Bitmain S17 miners will continue to operate after the halving.
