Bitcoin Mining Rigs: Why Are BTC Miners Leaving The Scene?

May 16, 2024

Bitcoin mining

The BTC halving rush has finished, and the moment many crypto investors and speculators were waiting for has come. What will happen next?

After the halving, the first impact we saw was the declining hash rate, a natural dynamic after slashing the number of BTC in circulation and the miners’ rewards. Many Bitcoin mining rigs saw their output decline due to dramatic fluctuations in price and the overall Bitcoin blockchain elements.

Let’s navigate the details of this Bitcoin event and how it affected BTC miners.

Post-Halving Mining Drop

The Bitcoin halving, which occurs every year to sustain ecosystem development and avoid overheating influences, took place on April 20th. As such, the rate at which new coins are created is reduced, the BTC miners’ rewards are cut in half, and the supply is decreased.

This economic axiom means that the BTC market price should increase. However, the impact on other blockchain inputs has sent the coin price trembling.

Other factors, such as miner’s revenue, average block size, mining output (hash rate), and transaction cost, have also been on a roller coaster, going up and down the chart.

Bitcoin mining rigs were the most concerned about this change because declining mining output and rewards meant lower revenue. As a result, many miners re-strategized their operations and redefined their priorities, as most of their work had become unprofitable.

Bitcoin Hash Rate Fluctuation

The hash rate refers to the computing power spent to mine a Bitcoin. This includes the number of attempts made by BTC mining rigs to solve a highly complicated equation. Generally, a greater hash rate means higher power consumption and transaction costs.

However, the hash rate drop can be attributed to either a high attempts/success rate or a decreasing number of Bitcoin mining rigs, and the latter is what concerns the market at the moment.

Bitcoin hash rate chart

The declining revenue streams led to many Bitcoin mining shutdowns, and several unprofitable rigs opted for less-consuming machines or relocated for lower energy costs.

Experts predict that the current trend of Bitcoin mining firms leaving the scene might continue for a few months this year, especially with the anticipation of higher electricity prices in the summer. However, optimistic forecasts say that we may see a recovery by the end of 2024.

How Did it Affect Bitcoin Mining Rigs Stocks?

Many Bitcoin mining rigs had to cease operations or restructure their assets because the mining rewards dropped tremendously. 

The collective mining revenues dropped from $73 million to less than $30 million in one week, driving the stocks of many BTC mining companies down.

BTC mining revenue graph

However, the drop was only noticeable in some firms with huge output. Riot Platforms Inc. had its stock price drop from $12 to $9 in five days. CleanSpark Inc., one of the leading US mining firms, also suffered a stock price decline from $20 to $15 between April 23rd and May 1st.

Conclusion

Many investors and crypto traders were waiting for the recent BTC blockchain halving. However, Bitcoin mining rigs definitely did not wait for the severe damage that followed this event.

The slashing of miners’ rewards led to a total decline in the computing output to solve a Bitcoin. Eventually, many mining companies had to downscale their operations as they were deemed unworthy of the hefty power bills they were paying.

This might last a few months, and major mining firms can weather this storm, predicting a recovery by the end of 2024 and the beginning of 2025.

Subscribe Our Newsletter

People Are Running Out Of Money
People Are Running Out Of Money

In the Census Bureau's "household pulse" poll conducted in May the previous year, 46.7% of respondents said they had no problem paying their typical household costs.

Banks and Finance
Summer Vacations Time: Big Cap Stocks to Invest In Now.

Milena

It’s Time For Summer Vacations and Here Are Big Cap Stocks to Invest In Now.

Pent-up demand is driving increased overseas travel. And here is your time to invest in its big cap stocks.

Stocks
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Tamta

Crypto Trading For Beginners
Since Bitcoin's debut in early 2009, the popularity of cryptocurrencies has skyrocketed significantly. Although Cryptocurrencies' primary goal was to serve as a fast and decentralized payment alternative, they soon gained recognition as an option to generate a passive income.

discover
Best Forex Affiliate Programs in 2024

Constantine

Best Forex Affiliate Programs

Learn what Forex affiliate programs are, what features they have and what the best options are on the market today.

Fintech
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.