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Bitcoin News Update: Post-Halving Challenges and Rising Energy Expenses Propel Consolidation in Bitcoin Mining

Bitcoin News Update: Post-Halving Challenges and Rising Energy Expenses Propel Consolidation in Bitcoin Mining

Bitget-RWA2025/11/12 03:32
By:Bitget-RWA

- Bitcoin mining faces intense consolidation as post-halving pressures and energy costs eliminate smaller operators, per Marathon CEO. - JPMorgan highlights U.S. miners' energy-efficient infrastructure as prime M&A targets for hyperscalers and AI firms seeking scale. - Greenidge's modular Pod X technology boosts mining efficiency by 35%, positioning it as a leader in capital-efficient operations. - Bernstein identifies Riot Platforms as top consolidator, citing its aggressive $2B+ acquisition attempts to s

The

mining sector is now facing fierce competition, with Marathon Digital Holdings' CEO predicting that only the most robust and efficient companies will survive the upcoming cycle. This caution highlights a significant transformation in the industry, fueled by financial strain after the halving, rising energy expenses, and a notable increase in mergers and acquisitions (M&A), .

According to JPMorgan analysts, publicly traded Bitcoin miners in the U.S.—which together utilize up to 5 gigawatts of electricity and could tap into another 2.5 gigawatts—are becoming prime acquisition targets for hyperscalers and AI companies eager for energy-efficient infrastructure,

. The latest halving, which cut block rewards and increased price swings, has left smaller mining firms in a precarious financial position, making them more open to buyout proposals, . This pattern is already evident: CoreWeave's 200-megawatt AI partnership with , along with a hostile takeover attempt by (RIOT) for , reflect a broader industry shift toward high-performance computing (HPC) and strategic consolidation, .

Brokerage Bernstein has identified Riot Platforms as the leading consolidator, pointing to its financial resources to pursue acquisitions,

. Riot’s aggressive move to acquire Bitfarms in October 2024 illustrates the increasingly competitive tactics being used to secure scale and energy agreements, . JPMorgan suggests that this wave of consolidation could "streamline the Bitcoin network" by shifting energy resources away from smaller players, potentially increasing profits for those who remain, .

Innovation is also transforming the sector. Greenidge Generation Holdings Inc. has recently launched the Greenidge Pod X, a modular mining solution aimed at boosting efficiency and operational uptime,

. The Pod X can accommodate 792 miners in a single unit—35% more than similar products—and has already been installed in four U.S. states, allowing for quick setup at new locations, . CEO Jordan Kovler highlighted that the Pod X sets Greenidge apart from competitors, positioning the company as a frontrunner in a market where operational scale and capital efficiency are increasingly important, .

Nonetheless, challenges persist. While JPMorgan expects M&A activity to pick up speed, analysts warn that regulatory hurdles and fluctuations in the energy market could complicate transactions,

. Moreover, the success of integrating HPC depends on miners’ ability to generate revenue from computing power beyond Bitcoin, a shift that comes with its own set of risks, .

At present, the industry's future rests on two key factors: securing affordable, scalable energy and adapting to rapidly changing technological and financial conditions. As the CEO of Marathon put it, "The next cycle will separate the resilient from the obsolete."

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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