How Bitcoin Miners Are Preparing For The Halving

Ahead of the April 2024 halving, which was set to cut the block reward from 6.25 to 3.125 bitcoin and reduce daily new supply from 900 to 450 bitcoin, mining companies described how they were preparing. Because the halving doubles the cost of producing each bitcoin while operating costs stay the same, efficiency and cheap power were central to their plans.

Geoff Morphy, then CEO of Bitfarms, pointed to low operating costs, near-total reliance on renewable energy and a partnership with Paraguay’s national electricity operator. Tether CEO Paolo Ardoino described investment in wind, solar and hydro power and the company’s Moria platform for managing mining operations. Drew Armstrong of Cathedra called mining “a brutal form of commodity production”, and Thomas Pacchia, a mining adviser and co-founder of the PubKey bitcoin cultural centre in New York, stressed market and regulatory readiness.