Bitcoin miners are scooping up their rivals to survive the Bitcoin halving

Bitcoin mining companies have been acquiring their competitors for quite some time, and this trend has intensified following the Bitcoin halving—a technical event that occurs every four years to ensure scarcity and protect against inflation. This year, the halving reduced mining rewards from 6.25 bitcoin to 3.125, making it more difficult for miners to remain competitive and profitable.

Rob Chang, CEO of Gryphon Digital Mining, acknowledges that Bitcoin halving has significantly affected the mining landscape by reducing block rewards, directly impacting profitability. However, he notes that the real challenge lies in the rising difficulty level and intensifying competition, which further compresses margins.

In an email to Quartz, he stated, “The companies that will come out on top are those that run efficient operations and have access to low-cost power.”

The decrease in rewards has coincided with a lackluster performance in Bitcoin’s price. Despite expectations of significant gains, Bitcoin has struggled to maintain its momentum since reaching its peak of $73,737 in March, just before the halving. Currently, it is struggling even to cross the $60,000 threshold.

In light of Bitcoin’s sluggish performance, let’s delve into the recent acquisition history of Bitcoin mining companies.