Bitcoin miners are taking advantage of the opportunity to earn extra income ahead of the 'halving'.

Currently, 19 million Bitcoins have been mined, equivalent to 90% of the supply. The next "halving" is expected to take place in April 2024. Analyst Gregory Lewis at brokerage firm BTIG says people are rushing to add more Bitcoin mining equipment ahead of this event.

According to blockchain.com , Bitcoin's hashrate has surged to an all-time high. This means miners now need more computing power and faster speeds to earn a Bitcoin.

Analysts at JP Morgan estimate that hashrate reached record highs for 11 consecutive months, including a sharp increase in October 2023.

In October, Bitcoin surged by approximately 37% after a prolonged period of stagnation.

However, mining still cannot generate as much profit as Bitcoin's heyday in 2021.

The metric for miners earning 1 petahash per second of computing power per day has risen to over $81, up from $70 in early November, but remains significantly lower than its peak of $127 in early May, according to the Hashrate Index.

With six months remaining until the next halving, Bitcoin miners are looking for ways to protect their profits in an increasingly competitive environment.

William Szamosszegi, CEO of Sazmining, said that the halving events will force miners who cannot afford the investment to leave the game.

In the past, the price of Bitcoin has typically surged after each halving event. Six months after the first halving in 2012, the price of Bitcoin rose from $12 to $126. After the second halving in 2016, Bitcoin increased from $654 to $1,000 within seven months. In 2020, the price of Bitcoin also rose from $8,570 to $18,040.

The third halving in 2020 lowered the miner reward to 6.25 Bitcoin per block, so it will drop to 3.125 Bitcoin by April 2024. Currently, mining each block yields $231,250.

Matteo Greco, an analyst at digital asset investment firm Fineqia International, said many Bitcoin mining companies are upgrading equipment and increasing hashrate power to remain competitive. To preserve their profit margins, some players have shifted operations to Central American countries, where mining costs are more affordable and governments are more friendly to cryptocurrencies.

Ludovic Thomas, a portfolio manager at Criptonite Asset Management, said it's still too early to conclude that Bitcoin miners have overcome the difficult period. He noted that increased profitability is often accompanied by an increase in hashrate and Bitcoin mining difficulty.

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