Miners prepare for the halving. Every four years, the Bitcoin is subject to a halving. In practice, this means that the rewards collected through mining are halved. The next one being scheduled for 2024, many mining companies are working hard to accumulate as many BTC as possible. This is particularly the case of TeraWulf, which has just purchased tens of thousands of mining machines.
TeraWulf buys 18,500 BTC miners
TeraWulf is an American company specializing in cryptocurrency mining. On July 18, the latter announced the purchase of 18,500 additional mining machines.
In practice, TeraWulf purchased 18,500 Antminer S19j XP from the manufacturer Bitmain. All for an amount of $53.4 million. The objective behind this massive purchase is to increase the computing power deployed by TeraWulf to 7.9 EH/s by the end of 2023.
Once received, the machines will be installed in the Lake Mariner mine in New York. To do this, TeraWulf has undertaken the construction of a third building to house the equipment, which should be completed by the end of the year, for the reception of miners.
“At TeraWulf, we continue to believe that all hashrate created is not equal. Our planned expansion with S19j XPs will further strengthen TeraWulf’s position as one of the most efficient mining fleets in the industry with an efficiency of 25.7 J/TH.”
In effect, TeraWulf enjoys an average electricity cost of 3.5 cents per kilowatt hour. Therefore, the company is not only increasing its hashing capacity. Indeed, it is also positioning itself on a better profit margin before the next halving.
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April 2024: halving target and beyond
As we discussed earlier, in April 2024 will be the next Bitcoin halving.
On this occasion, the mining rewards received when validating a block will once again be halved. Therefore, the mining reward will increase from 6.25 to 3.125 BTC per block.
As a result, many miners have increased their machine park in order to accumulate as many BTC as possible before this change in the reward.
Historically, the price of BTC has always reacted positively to halvings. Thus, miners hope to accumulate BTC when the rewards are still juicy so that they can sell them on the next price rise.
Recently, and following the emergence of Ordinals and BRC-20 on Bitcoin, miners have a new income. In effect, transaction fees brought $184 million to miners in the second quarter of this year. This represents an increase of 270% compared to the previous quarter.
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