Miners receive financial support, Paraguay reconsiders the ban
The ramifications of Bitcoin's impending halving are far-reaching, sparking a surge in investment in mining and regulatory debates around the world.
The event, which cuts miners in half, is undeniably a pivotal moment for the future of Bitcoin and perhaps the broader crypto market.
Will 2024's Bitcoin Half Mine Explosives or Spark Innovation?
In the US, Auradine, a Bitcoin mining machine company focused on security and AI, recently received $80 million in Series B funding. The move marks a major milestone for the company and reflects investors' confidence in the sector due to the halving.
Other major mining companies are not sitting idle. Bitfarms Ltd, a North American player, has boldly invested $240 million in its mining capacity. As BeenCrypto previously reported, CleanSpark announced similar infrastructure investments in early February. These activities are showing extensive preparation.
Read more: 5 best platforms to buy Bitcoin mining stocks before 2024 halving
Miners aren't the only ones paying attention. Regulators are also closely monitoring the potential impact of the halving.
In Paraguay, a recent bill proposed a major ban on crypto mining. 14 Paraguayan senators proposed the law due to the threat of exploiting the country's hydroelectric resources.
However, senators have now stopped progressing on the ban. The senators recognized the economic value of using surplus power from the Itaipu hydropower plant for crypto mining instead of exporting it.
Senator Salin Bouzarkis has announced Paraguay's support for crypto mining investment.
“Today we approved a statement by the Senate of Paraguay supporting domestic and foreign investments in infrastructure and urged the Ministry of Industry to study the economic value of selling our surplus energy to the crypto mining industry,” wrote Senator Bouzarkis on X (formerly Twitter). .
This shift highlights the complex interplay between crypto and national energy policy.
Read more: Bitcoin Half Countdown
A halving reduces the reward for mining a Bitcoin block from 6.25 to 3.125 BTC, which has a significant impact on mining profitability. As a result, miners are under pressure to innovate and find ways to reduce costs while maintaining or increasing their Bitcoin output.
Additionally, along with profitability, the industry's gaze has turned to Bitcoin's market performance, hoping for price increases to balance the reduced rewards. CryptoQuant reports that mining hashrate has dropped by 30% since the last halving, a trend that is likely to continue.
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