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Bitcoin miners use record amounts of power in run-up to halving

Bitcoin miners use record amounts of power in run-up to halving
Snapshot
Bitcoin miners are ramping up activity in preparation for next month's halving. Credit: Shutterstock / rzoze19
By
Mike Millard
  • Bitcoin miners are using record amounts of energy.
  • MicroStrategy's Bitcoin holdings double in value.
  • Crypto super PACs get a win.

Bitcoin miners using record amounts of power

Bitcoin miners are adding more equipment and using record amounts of energy in the approach to the next halving, which is expected in April, Bloomberg reported.

Bitcoin’s value has surged more than fourfold since 2022, helping 13 of the top mining outfits spend about $1 billion on more computers in the last year, the report said.

More machines are being added and more power consumed as miners look to increase their efficiency in validating records of blockchain transactions to earn Bitcoin in anticipation of the halving, which happens every four years.

When the halving occurs, miners’ rewards will drop to 3.125 Bitcoin from 6.25 each time they create a new block, DL News reported. About 144 blocks are mined each day, which means about 900 Bitcoin per day before the halving, and 450 Bitcoin after — driving miners to ratchet up their computing power.

Their increased activity is also pushing them to consume more energy, Bloomberg noted.

US miners used 19.6 gigawatts of electricity in February, up from 12.1 gigawatts a year earlier and enough to power 3.8 million homes in Texas, where many mining operations are located.

MicroStrategy’s Bitcoin portfolio swells to $13.2bn

The value of MicroStrategy’s Bitcoin investments has more than doubled, helped by the cryptocurrency’s surge last week to hold above $68,500, Bitcoin.com reported.

Since 2020, the company has acquired 193,000 Bitcoin for $6.1 billion, with the current market value of the holdings reaching about $13.2 billion, a 116% increase.

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MicroStrategy’s shares are up more than 300% in the last six months.

Crypto super PACs notch win, look for more

Crypto-backed super PACs are celebrating a successful Super Tuesday in which they spent more than $10 million to help knock anti-crypto Democratic Representative Katie Porter out of contention for a California Senate seat, Politico reported.

The crypto political network that includes super PACs Fairshake, Defend American Jobs and Protect Progress plans to draw on its $80 million war chest to target Democratic Senate primaries in Michigan and Maryland, spokesperson Josh Vlasto said.

The industry is pushing for a US regulatory overhaul to help legitimise crypto, making this year’s elections crucial to achieving that aim.

Crypto market movers

  • Bitcoin is up 2.20% today at $69,985.30.
  • Ethereum is up 1.21% today at $3,960.71.

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