US Bitcoin Miners Relocating Old Equipment Overseas

Preparing for the Bitcoin Halving

The Bitcoin halving, where mining rewards are cut in half, is approaching. To stay profitable, US miners are upgrading their equipment.

Why Machines Are Leaving the US

Luxor Technology reports that 600,000 S19 series mining rigs are being moved out of the US, primarily to Africa and South America. These older models are less cost-effective to run in the US due to high energy costs.

Destinations for Old Machines

Paraguay, Uruguay, Tanzania, and Ethiopia are popular destinations for old mining machines. Ethiopia, with its cheap electricity (3 cents per kWh), is becoming a crypto mining hub.

Impact of the Halving

The halving is influencing buyers’ behavior. Some are waiting for prices to drop after the event. Luxor estimates that 600,000 S19 rigs are being moved overseas, where energy is cheaper.

Ethiopia’s Rise as a Crypto Mining Hub

Ethiopia’s low electricity costs are attracting crypto mining companies, including those from China. Chinese firms are investing heavily in the East African nation, making it a potential crypto mining hotspot.