According to estimates by Ethan Vera, chief executive officer at cryptocurrency mining service provider Luxor Technology in Seattle (USA), about 600,000 S19 series Bitcoin mining machines are leaving the US. This is considered the most popular excavator line in use.
Miners are looking to countries like Ethiopia and Nigeria to reduce Bitcoin mining costs
"There is more risk in locating the machines in Africa but I have to move them there. Cheaper electricity means it will take less time to recover overhead costs. At the same time, labor and construction materials are also much cheaper," Nuo Xu said.
However, not all Bitcoin mining companies in the US can move elsewhere. This process becomes even more difficult for publicly traded companies because they are also under pressure from risk-averse shareholders. In addition, moving also has many different risks such as transportation costs, damage and security concerns.
Bit Digital, one of the largest Bitcoin mining companies, is being forced to keep its old mining rigs idle in a warehouse in Houston.
"Basically, these machines are just sitting idle. However, they are still kept because when Bitcoin prices increase, the machines can still make a profit," said CEO Sam Tabar.
Bitcoin miners have been preparing for the halving for years and are spending a lot of money to replace old hardware. According to TheMinerMag, 13 leading Bitcoin mining companies, including Riot Platforms and CleanSpark, have ordered more than $1 billion worth of miners since February 2023.
