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Bitcoin Miners Return, Invests Above $1B on Equipment Purchase

Published 10/03/2024, 08:40
Updated 10/03/2024, 08:45
© Reuters.  Bitcoin Miners Return, Invests Above $1B on Equipment Purchase
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Coin Edition -

  • Bitcoin miners have reportedly returned to the market using record-high electric energy.
  • The return is driven by Bitcoin’s bullish ascendance amidst anticipations of the upcoming halving.
  • Mining companies have invested more than $1 billion to purchase power-saving computers.

Bitcoin miners have actively returned to the market after a long period of silence in the recent crypto winter. According to a recent Bloomberg report, Bitcoin miners spend a lot of dollars on equipment and use energy at record levels, marking the revival of Bitcoin mining.

Reportedly, the Bitcoin miners are back in survival mode driven by Bitcoin’s prevailing bullish trend. Following the Spot Bitcoin ETF launch in January, Bitcoin has seen substantial surges in its price. The cryptocurrency, which stood below the $45k level, surged past $45k immediately after the launch.

With the increasing acceptance of ETFs and anticipations of the upcoming Bitcoin halving, BTC price started moving upward, crossing the substantial $50k and $60k levels, finally marking a new all-time high of $70k recently. Currently trading at $68,684, Bitcoin exhibits a 24-hour increase of 1.94% and a weekly surge of 12.23%.

As per the data shared by TheMinerMag, top mining companies have ordered about $1 billion worth of specialized computers since February 2023. CleanSpark Inc. and Riot Platforms spent the highest amounts of $473 million and $415 million, respectively, leading the group. Asher Genoot, the CEO of the Bitcoin miner Hut 8 Corp., stated,

Scale matters because you can get machines for better rates, bigger energy deals and drive down the cost of development. When you have scale, you have more marginal and growth profits and you can cover your big costs.

These miners look for inexpensive power as the computers they use to validate records of transactions on the blockchain to earn Bitcoin rewards consume a large quantity of energy. The machines they purchase help them to use the devices at favorable electricity charges.

The post Bitcoin Miners Return, Invests Above $1B on Equipment Purchase appeared first on Coin Edition.

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