Bitcoin Miners Energy Consumption Skyrockets Ahead of Halving

• Bitcoin prices have remained high and skyrocketed due to the supply shock.
• A Coin Metrics assessment states that miners used 19.6 gigawatts of electricity last month.

In the run-up to the pivotal halving, Bitcoin miners had hoped for a rapid mining rate. Bitcoin miners have reportedly hit a new monthly energy consumption peak, according to a Bloomberg article. Bitcoin prices have remained high and skyrocketed due to the supply shock and the simultaneous increase in the mining rate.

After a fatal encounter during the last crypto winter, Bitcoin miners are back in action in anticipation of a code modification that might imperil income sources. Their energy use is unprecedented.

Pushing Hard Ahead of Halving

A Coin Metrics assessment states that miners used 19.6 gigawatts of electricity last month, which is a record high compared to 12.1 gigawatts in the same time of 2023.  Calculations reveal a spike of more than 61% in the figure.

Thirteen of the largest mining companies have placed orders for specialized computers with a combined value of more than $1 billion since February 2023, according to data compiled by TheMinerMag from public filings. With $473 million and $415 million, respectively, CleanSpark Inc. and Riot Platforms Inc. invested the most on rigs among the group.

There has been a consistent uptick in demand for Bitcoin mining hardware ever since the introduction of Bitcoin exchange-traded funds (ETFs). The ongoing buying spree has also caused a supply shock, widening the gap between the supply and demand for Bitcoin by almost 20%.

In most cases, when Bitcoin halving occurs, it alters the supply-and-demand equation so that mining Bitcoins steadily gains significance. The price of Bitcoin lately set a new all-time high amidst ongoing strong bullish momentum.

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