US Bitcoin Miners Shift Older Rigs to Ethiopia Before 2024 Halving Due to Low Electricity Costs

With the Bitcoin halving event looming in April 2024, US miners are strategically relocating older mining rigs to countries offering cheaper electricity, with Ethiopia becoming a prime destination. This move is driven by the need to maintain profitability as the event will significantly reduce mining rewards. Luxor Technology highlights that approximately 600,000 S19 series mining rigs are being transferred out of the US, with Ethiopia’s low electricity rates of about 3 cents per kilowatt-hour (kWh) being a major attraction.

Strategic Relocation in Anticipation of Halving

The Bitcoin halving is a pivotal event that reduces the reward for mining new blocks by half, thereby diminishing the miners’ earnings. With less than a month to the April 2024 halving, miners are in full gear, upgrading to more efficient mining computers to cushion the impact. The relocation of about 600,000 older S19 series mining rigs from the US underscores the miners’ quest for sustainability. These miners are eyeing regions like Africa and South America, where operational costs are significantly lower due to cheap electricity.

Implications for the Global Mining Landscape

The relocation of mining operations to Ethiopia and similar countries is indicative of the broader changes within the crypto mining industry. Miners are becoming increasingly mobile, seeking out the most cost-effective environments to maximize profitability. This trend could lead to a more decentralized mining network, potentially altering the global distribution of mining power. The move to countries like Ethiopia could also spur technological and economic development, positioning these nations as key players in the crypto mining industry.

Source: BNN