Bitcoin Halving13 Mar 2024 09:40
HIVE Digital Technologies ready for Bitcoin halving next month
HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE), a cryptocurrency mining firm, has taken steps to be in a strong position ahead of the upcoming Bitcoin halving event set to take place in late April.
To create scarcity and prevent inflation, Bitcoin has a maximum supply of 21 million. Every four years the mining reward is halved to continuously reduce the rate at which the coin is introduced. At the upcoming halving, the block reward will decrease from 6.25 to 3.125 Bitcoin.
CEO Aydin Kilic told Proactive that going into the halving event, HIVE has worked to increase its mining capacity and reduce its average operating production costs per Bitcoin while increasing its holdings.
In late February, the company announced it had purchased another 1,000 Bitmain S21 Antminers to boost its Bitcoin mining capacity, which Kilic said would drive greater efficiency, in turn resulting in reduced energy consumption and a reduced cost per Bitcoin.
It mined 200 Bitcoin in February to increase its holdings by 10% month-over-month to 2,131 Bitcoin.
“This is very important going into the halving because we’re going to have 900 Bitcoin a day rewarded by the network dropped down to 450 Bitcoin a day rewarded by the network,” Kilic said.
“It will create some short-term pain for some of the miners, but we’ve got an incredibly strong balance sheet going into this halving event and it’s a great opportunity to be strategic because you can buy distressed assets.”