Recent reports from the bitcoin mining company Digital marathon entries have revealed the company’s latest strategies ahead of the next bitcoin Halving event expected to take place in April 2024.
Last Focus Before bitcoin Halving
According to the press report, Marathon is adopting an international joint venture model as its latest strategy to maintain its expansion – a method that the company perceives as a means to reorient its strategies before the next bitcoin/when-is-the-next-btc-halving-date-bitcoin-halving-guide/” target=”_blank” rel=”noopener nofollow”>bitcoin Halving.
The firm also added a 30% expansion that will be achieved through the construction of additional facilities in Paraguay and Abu Dhabi. That’s because Marathon has grown tired of costly overhead and continued delays in energizing its U.S. plants.
Marathon’s shift toward diversification and cost reduction with its entry into the renewable energy sector bitcoin mining in Paraguay marks a fundamental step for the company, and this comes after a successful effort in Abu Dhabi.
With the latest move, Marathon could eventually become the most regionally diverse miner and gradually reduce manufacturing costs over time. Furthermore, with its current hash rate of 19.2 EH/s (exahashes per second) online, the company is the largest publicly traded miner.
Currently, at 428 EH/s, the average daily hash rate of the bitcoin network is almost at its all-time high. As a result of this, adversary miners chasing the next block are under more pressure.
Additionally, Marathon owns 13,396 btc, which is now worth $474 million. This makes it the largest public miner owned by bitcoin (only amounts held, not including internalized transfers).
The report also revealed that the company increased its hash rate from 7 EH/s this time last year by 467% this year, resulting in an increase in bitcoin creation. Because of this, Marathon accumulated 3,490 btc over the past year.
While the company’s cost structure may have improved over time, it remains comparatively expensive compared to its rivals. After the halving, this could cause Marathon to see a decrease in its profit margin if the btc price falls below $30,000.
JPMorgan on bitcoin hash rate
In October, financial giant JPMorgan predicted a bitcoin/jpmorgan-drop-bitcoin-metric/” target=”_blank” rel=”noopener nofollow”>possible decrease in bitcoin network hash rate. According to the company, the network’s hash rate will drop by 20% at the next halving in April 2024.
“We estimate that up to 80 EH/s (or 20% of the network hash rate) could be removed in the next halving (April 24) as less efficient hardware is decommissioned,” the company said. company.
The company’s prediction was due to the four-year total block reward opportunity estimated at $20 billion, down 72% from its all-time high of $73 billion in April 2021. Since then, this figure has ranged between $14 billion and $25 billion over the past year.
Featured image of iShock, chart from Tradingview.com
