Bitcoin miners turn to renewable energy amid profit margin squeeze
Analysis
Price Impact
MedBitcoin miners' pivot to renewable energy, driven by a hash price squeeze, indicates their resilience and long-term commitment to maintaining operations despite economic challenges. this strategic shift, while addressing immediate cost pressures, also strengthens the network's sustainability and efficiency over time.
Trustworthiness
HighThe article is from cointelegraph, a well-known crypto news source, citing industry data providers like hashrate index and cryptoquant, and specific company actions (sangha renewables, phoenix group, canaan, tether), giving it high credibility.
Price Direction
NeutralWhile the underlying profit squeeze on miners could theoretically lead to selling pressure, their proactive adaptation by embracing cheaper renewable energy mitigates this risk. this move supports network stability and long-term viability, preventing a strong immediate bearish or bullish push on price from this specific news item.
Time Effect
LongThe transition to and benefits from renewable energy sources for mining operations are strategic, long-term endeavors that will gradually reduce operating costs and improve the industry's sustainability over months and years, rather than having an immediate short-term price effect.
Original Article:
Article Content:
Vince Quill 4 minutes ago Bitcoin miners turn to renewable energy amid profit margin squeeze Bitcoin mining hash price, a critical metric for determining profit margins in the industry, is hovering near record lows. Listen 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED Bitcoin mining companies are turning to renewable energy to reduce costs amid record-low hash price, a critical metric for miner profitability, which is below the $40 level that marks the breakeven point for mining operators. Hash price, which measures expected miner profitability per unit of computing power used to successfully add a block, is about $39.4 per petahash second per day (PH/s/day) at the time of this writing, according to mining data provider Hashrate Index. Sangha Renewables, a Bitcoin ( BTC ) miner and renewable energy company, energized a 20 megawatt (MW) solar-powered mining facility in Ector County, Texas, on Thursday, according to TheMinerMag . Miner hash price continues to decline. Source: Hashrate Index The Phoenix Group, a mining and digital infrastructure company, announced in November that it had launched a 30-megawatt mining operation using hydroelectric power in Ethiopia. In September, Canaan, a hardware manufacturer and Bitcoin miner, partnered with digital infrastructure company Soluna to deploy a mining facility at a wind-powered site in Briscoe County, Texas. Canaan is also developing an adaptive mining rig to maximize energy efficiency. The hardware balances electrical loads and uses AI to adjust energy usage. The Bitcoin mining industry is facing several economic challenges, including reduced mining rewards, which have placed industry players in the toughest profit margin environment in the sector’s history. Related: Thirteen years after the first halving, Bitcoin mining looks very different in 2025 Mining BTC becomes increasingly expensive The Bitcoin network’s mining hashrate, a proxy for the total amount of computing power securing the protocol, continues to reach new all-time highs. Although the hashrate oscillates in the short term, the long-term trend is upward, with the network hashrate crossing the 1 zetahash milestone in April. Bitcoin network hashrate. Source: CryptoQuant One zetahash is equal to 1,000 petahashes. Rising hashrate means that miners must expend ever-greater computing resources to remain competitive and successfully mine blocks. In November, stablecoin issuer Tether said it was shuttering its Bitcoin mining operation in Uruguay , citing rising energy costs. Magazine: Big questions: Would Bitcoin survive a 10-year power outage? # Bitcoin # Mining # Business # Bitcoin Mining # Energy Add reaction