Bitcoin Mining Firm Iris Energy Increases Hashrate by 25% Ahead of Halving
With Bitcoin’s highly anticipated “halving” event only 6 months away, Canada-based Bitcoin mining firm Iris Energy has announced another major expansion to its computer fleet. On Friday, the company confirmed that its total hashrate has increased by 25% from 5.6 exahashes per second (EH/s) to 7.0 EH/s, by adding 7,000 of Bitmain’s newest S21 miners to its fleet. The addition cost the company $19.6 million.
The Importance of Hashrate in Bitcoin Mining
“Hashrate” refers to the number of hashesβor guessesβthat miners can generate to solve a complex mathematical problem required to create Bitcoin’s next block. An exahash is equivalent to one quintillion hashes. The first miners to build each block are rewarded with freshly minted BTC. The faster miners can produce hashes, the more BTC they earn, and the more revenue they generate. So increasing hashrate ups the chances that a company will win that race each time there’s a new block on the network.
Expansion Plans and the Halving Event
Back in June, Iris revealed plans to expand its capacity to 9.1 EH/s by early 2024. That target has now been bumped to 9.4 EH/s, while the firm “continues to monitor the market for additional hardware acquisition opportunities.” After the machines ship in early 2024, miner economics are expected to drastically change in light of the April 2024 halving.
Impact of Halving on Mining Industry
The halving is a regularly scheduled event that will reduce miners’ guaranteed BTC rewards per block from 6.25 BTC to 3.125 BTC. On one hand, this may make mining a less sustainable business, meaning only the most cost-efficient firms will be able to compete in the industry. On the other hand, many view the halving as a catalyst for Bitcoin bull markets, which may ultimately make the industry more profitable in dollar-denominated terms.
Expansions in the Mining Industry
Other major mining firms including Blockstream, Riot, CleanSpark, and others have announced major expansion plans this year, often with explicit reference to the Bitcoin halving. “We continue to make use of opportunities created by current market conditions to prepare for next year’s bitcoin halving,” said CleanSpark CFO Gary A. Vecchiarelli upon announcing a $9.3 million expansion in June.
Hot Take: Iris Energy Prepares for Bitcoin Halving with Hashrate Expansion
As the Bitcoin halving event approaches, Canada-based Bitcoin mining firm Iris Energy is increasing its total hashrate by 25% through the addition of Bitmain’s S21 miners. The company’s hashrate now stands at 7.0 EH/s, positioning it well for mining success in the future. While the upcoming halving may impact mining profitability, some believe it could also drive Bitcoin bull markets and increase industry profits. Iris Energy is not alone in its expansion plans, with other major mining firms also preparing for the halving event. The race is on to build mining capacity and stay competitive in this evolving industry.
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