The costs for Bitcoin miners are decreasing.

According to the latest report prepared by CoinShares, the Bitcoin mining sector is taking significant steps towards reducing costs and adopting artificial intelligence technologies following the halving event in April. Despite challenging market conditions, miners are preparing for the future by continuing their expansion and investments.

Artificial Intelligence is Revolutionizing Bitcoin Mining

The latest report from cryptocurrency analysis company CoinShares examines the strategies of Bitcoin miners to adapt to the changes following the halving in April 2024. The report reveals that mining companies have not abandoned their growth plans despite rising costs.

During the Bitcoin network's halving process, which occurs every four years, the reward per block decreased from 6.25 BTC to 3.125 BTC in April. Despite this decline, miners are continuing to invest in new infrastructure to prepare for potential price increases in the future.

According to CoinShares' second-quarter data, the average cost of producing one Bitcoin is around $49,500. Leading companies in the sector, Cormint and TeraWulf, are positioned as the most efficient producers with electricity costs of $15,000 and $19,000 per Bitcoin, respectively. On the other hand, major players like Marathon Digital Holdings and Hive Digital are facing electricity costs of over $40,000 per Bitcoin.

Mining companies are turning to artificial intelligence technologies to increase profitability. In this context, Hive announced in October that it made a $66 million investment in Nvidia GPUs.

According to JPMorgan's August report, merger and acquisition activities in the sector have gained momentum. In particular, Riot Platforms and Cleanspark, which have strong cash positions, are acquiring other mining facilities to increase their hashrate capacities.