The halving of bitcoin in April 2024 has once again changed the balance of power in the cryptocurrency market, particularly in the mining industry. The reward per block dropped from 6.25 BTC to 3.125 BTC, affecting the pricing and strategy of market participants and forcing miners to adapt to the new economic conditions.

In this article, we look at the changes in the mining industry after the halving, the key issues that market participants are facing now, and the strategies that will help miners not only survive, but also thrive in the new realities.
 

Halving in 2024: it's different this time

Although halving has happened before, in 2012, 2016, and 2020, the current situation has its own unique characteristics:

1. Increased competition among mining companies.

The mining industry has expanded significantly in recent years: with the emergence of large, professional players, the market has become more competitive.
 

2. Energy efficiency as a priority.

Rising electricity prices and stricter environmental standards are forcing miners to pay more attention to energy efficiency.
 

3. Rising transaction fees.

Declining block rewards have led to an increase in commissions, especially with the growing popularity of Level 2 projects and ordinal inscriptions, which allow fragments of data or multimedia to be recorded for individual satoshis. This has partially compensated for the decline in miners' revenues.
 

Halving 2024 was therefore a challenge for many participants, especially those who did not have time to modernise their facilities and adapt their business models.
 

Is halving a threat to miners?

For mining companies, the halving is more than just a reduction in royalties. It's a challenge to their profitability, forcing them to find ways to adapt, such as switching to more energy-efficient equipment. Reducing energy costs has become key to maintaining margins, especially in the face of declining block mining royalties.
 

Major players such as Core Scientific and Marathon Digital have been preparing for these changes. Core Scientific issued $55 million in stock and Marathon Digital raised $750 million through an additional public offering. These moves suggest that leading companies not only anticipated the halving of the market, but also saw it as an opportunity to strengthen their market position, including through consolidation and the acquisition of less successful competitors.
 

However, for companies that did not prepare adequately, halving became a serious challenge. High operating costs and lack of liquidity led to financial difficulties for some miners, triggering a wave of mergers and bankruptcies. At the same time, the withdrawal of some miners from the market has temporarily stabilised the complexity of the network, which may improve conditions for those who have managed to stay and adapt.
 

What should miners do after halving?

Miners who anticipated halving began implementing the following strategies in advance:

1. Switch to energy-efficient equipment.

In 2023, many miners upgraded their equipment, allowing them to reduce their energy costs and increase their competitiveness.
 

2. Market consolidation.

Major players have built up liquidity to maintain their own infrastructure and have also raised third-party funding to withstand potential losses and take advantage of acquisition opportunities.
 

3. Risk management.

Many miners held onto mined bitcoins in anticipation of rising prices and actively explored renewable energy options to reduce costs.
 

After the halving, it is important to continue to monitor changes in network complexity and the bitcoin price, and adjust your strategy to the current situation.
 

The future of mining after halving the block reward

There is a common belief that lowering the reward per block will make mining unprofitable and cause a mass exodus of miners. In reality, the bitcoin network is designed to adapt quickly, and adjustments in complexity and technological innovation help keep the industry profitable.
 

Undoubtedly, bitcoin mining will become even more competitive in the future. Companies that remain in the market will be forced to find new ways to improve efficiency. Blockchains and Level 2 projects are already playing an important role in the bitcoin network, increasing bandwidth and commission revenues, partially offsetting the decline in block mining rewards.
 

Companies that have been able to upgrade their hardware and optimise their costs through market consolidation will remain competitive and be able to take advantage of new opportunities. This process is likely to lead to further concentration of mining capacity and monopolisation of the industry.
 

In addition, miners will increasingly take advantage of DeFi opportunities and diversify how they monetise their assets. For example, large companies are already providing their computing infrastructure to train artificial intelligence models, capitalising on the growing demand in this area.
 

In the long term, despite short-term challenges, the mining industry will continue to grow. Technological breakthroughs and a growing interest in distributed assets will be the main drivers of growth, creating new opportunities for companies willing to adapt.
 

The halving of 2024 was another turning point for the crypto market. It has become a time of challenges and growth opportunities for miners, requiring innovative solutions and financial sustainability. Strategies such as equipment upgrades and asset diversification have helped market participants remain competitive and take advantage of the post-halving reality.