Bitcoin miners in prime position to cut costs

Bitcoin miners are in the best position to cut costs, cryptocurrency asset management firm CoinShares reported.
"Miners are cutting costs as the industry continues to experience difficulties in the aftermath of the Bitcoin network's April halving," the report said in a statement on the 28th.
According to CoinShares' Q3 2023 Bitcoin Mining Report, the cost and difficulty of mining Bitcoin
"The bitcoin mining industry has faced significant challenges this year, including declining revenues and hash prices," he said. "Despite this,
"As miners continue to build new infrastructure, they are demonstrating their willingness to expand further in anticipation of future Bitcoin price increases," he added.
The Bitcoin network halving occurs every four years and cuts in half the number of Bitcoins mined per block.
The halving event in April reduced the amount of bitcoin used per block from 6.25 BTC to 3.125 BTC, significantly increasing the hard cash costs required to mine 1 BTC of bitcoin.
CoinShares said: "Based on Q2 data, the average production cost of 1 BTC for all listed miners is estimated to be approximately $49,500, down from $40,720 in Q1.
"This is up from $0. This means that most miners are still making profits at current price levels."
Cormint and TeraWulf reportedly boast the lowest mining costs, costing around $10,500 each in electricity costs to mine 1 BTC.
The two miners who have spent between $0 and $19,000 have spent over $20,000. Meanwhile, other miners, such as Marathon Digital Holdings and Hive, have spent over $20,000.
Some miners, such as Digital, charge over $40,000 per BTC in electricity costs. The cost of mining Bitcoin varies depending on the miner's power source, power contract, and the efficiency of the mining equipment.
The report explained that the declining profitability of Bitcoin mining may be the reason why miners are seeking diversified revenue sources, including AI.