Bitcoin miners begin preparing for the 2024 halving.
Mining company Marathon Digital is preparing for the Bitcoin halving.
In a statement this week, the publicly traded company announced the acquisition of two Bitcoin mining centers for $178.6 million. Data centers are located in Texas and Nebraska, USA.
The move is expected to add 390 megawatts of capacity to Marathon’s operations and reduce costs per mine by approximately 30%.
Halving occurs approximately every four years. This is built into the Bitcoin protocol and keeps the network secure and halves the rewards for miners who process transactions. Instead of getting 6.25 BTC for each block you process like now, after the halving you will get 3.125 BTC.
Halving the reward is intended to control Bitcoin inflation. There will only be 21 million Bitcoins in the world, and the halving serves precisely to ensure that the supply entering the market periodically slows down.
“We have spent the past year strengthening our balance sheet, increasing our cash position, increasing our Bitcoin holdings, and reducing our debt to prepare for the halving and capitalize on upside opportunities,” Salman Khan said. Marathon’s Chief Financial Officer (CFO) said in his press release:
Fred Thiel, Marathon’s president and CEO, added that the acquisition will give the company “the opportunity to reduce Bitcoin production costs, leverage energy hedging opportunities, and expand our operating capabilities in these regions.”
Bitcoin halving is coming
The next halving, which will be the fourth halving since Bitcoin’s launch in 2009, is expected to take place in April 2024.
As with previous halvings, the question lingering on investors’ minds is once again: ‘Is the price of the halving already set?’
Some believe this will be a bullish indicator for the market as cryptocurrencies become more scarce. Others say Bitcoin’s price will not change much. Because prospective buyers know it’s coming and can prepare months in advance.
Experts told Decrypt that miners have already started purchasing more efficient machines in preparation for the event.
Marathon Digital is the second largest holder of Bitcoin among all publicly traded companies invested in the digital asset. The company has 13,396 BTC on its balance sheet, currently worth $567 million.
*Translated by Gustavo Martins with permission from Decrypt.
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