Iris Energy, a Bitcoin mining company, is boosting its computing power by 25% in preparation for the upcoming Bitcoin halving event.
Australia’s Iris Energy, a Bitcoin mining company, is set to increase its self-mining computing power by 25% by partnering with Bitmain. The deal involves Bitmain delivering around 7,000 S21 mining machines. When these machines are up and running, Iris Energy’s self-mining power will go from 5.6 EH/s to 7.0 EH/s.
Iris Energy is set to pay Bitmain $19.6 million for these new mining machines. However, according to the purchase agreement, only $16.7 million (85% of the total) will be paid before the shipment. The remaining $2.9 million is due within a year after the machines are delivered, which is expected in early 2024.
Iris Energy plans to install these new machines in its mining facilities in Childress, Texas. Importantly, this capacity increase in self-mining directly contributes to the company’s revenue.
Iris Energy has three operations in Canada where they manage mining equipment for partners. What sets them apart is that they power all of their Bitcoin mining using renewable energy, which goes against the common belief that mining harms the environment.
Bitcoin Miners Plan Ahead for Halving Event
Iris Energy’s recent actions show a different approach as miners get ready for the next Bitcoin halving, expected in April 2024. Last year, miners were mostly selling their bitcoins to cover expenses and even selling their mining equipment to survive.
In contrast, Iris Energy’s recent expansion of its computing power is part of a strategy to prepare for the upcoming halving. They are using the latest Bitmain S21 miners to enhance their capacity for when the rewards for mining Bitcoin are reduced after the halving.
Miners need the latest equipment to stay competitive, especially since the halving will cut the rewards in half. This event, which is about six months away, could mark the start of a new bullish period and drive Bitcoin to new record highs.
Important:Ā Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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