US Bitcoin Miners Move Old Equipment Overseas

Bitcoin minning

Bitcoin halving, one of the most anticipated crypto events of 2024, is less than a month away, and miners appear to be fully prepared for the aftermath. The April event is projected to cut Bitcoin’s mining incentives in half, making transaction validation less profitable.

Why Bitcoin Mining Machines Are Being Moved Out Of The US

Currently, miners earn 6.25 BTC for each validated block added to the network. However, the halving will divide their earnings into 3.125 BTC for each block. Interestingly, many miners in the United States appear to be making changes, like upgrading to more efficient mining processors, to ensure their profitability.

According to Luxor Technology, over 600,000 S19 series mining rigs, which make for a significant share of equipment now in operation in the United States, are being transported out of the nation. According to Bloomberg, the mining computers are mostly transported (or sold) to African and South American countries.
The S19 series are older Bitcoin mining machines that may not be cost-effective to operate in nations such as the United States, where electricity prices are rather high. This explains why miners in the nation are replacing outdated computers with more efficient ones.

The S19 series are older Bitcoin mining machines that may not be cost-effective to operate in nations such as the United States, where electricity prices are rather high. This explains why miners in the nation are replacing outdated computers with more efficient ones.

According to the article, another key figure in the Bitcoin mining sector stated that while the S19 series and comparable models may not be cost-effective to run in the United States, they “can still generate decent profits and get an extended life if hosted” in specific African countries.

Miners Sell Their Hardware

Meanwhile, other miners choose to sell their hardware, with purchasers operating in low-cost power regions throughout the world. Many of these buyers are from Paraguay, Uruguay, Tanzania, and, most notably, Ethiopia.

According to Luxor, the approaching halving event has influenced purchasers’ decisions to acquire obsolete mining machines. “Some buyers are waiting until after the event to purchase older computers, assuming their prices will drop even more,” the business said.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.