A crucial moment happens within the Bitcoin mining industry every four years called the halving.
What is it and how is CleanSpark preparing for the halving?
The Bitcoin halving is when the reward for mining one Bitcoin block is reduced by half. The mining algorithm was designed to fight inflation and maintain scarcity.
Bitcoin Halving Timeline
The current daily production of Bitcoin is 900, divided between all big and small miners. However, this number will be reduced to 450 daily bitcoins after the upcoming halving event.
As an example, currently, each block is rewarded with 6.25 bitcoins. But after the halving, the block reward will be reduced to 3.125 bitcoins. This reduction will lead to a decrease in the number of less efficient mining companies. These companies will either have to shut down or operate at sporadic intervals, especially when energy prices are very high.
The halving is expected to happen in April, but it relies on a certain number of blocks (210,000) being mined. The exact halving date is challenging to predict because the global hashrate fluctuates depending on various factors.
CleanSpark recently purchased the most efficient rigs at a historic price, in preparation for the halving. You can learn more about the strategic agreement here.
CleanSpark owns its facilities and can manage uptime and efficiency. It has an active power management strategy and has built a monitoring system that monitors the price of bitcoin, energy costs, and global hashrate in real-time. By actively and efficiently managing its power, CleanSpark can keep its costs down, economically mine throughout the year, and operate at 99% uptime.
The Bitcoin halving is a positive economic phenomenon that reduces inflationary pressure on the digital currency. This has the potential to increase the value of Bitcoin, provided that the demand for it continues to grow. CleanSpark looks forward to potential new avenues of success after the halving occurs.
