Ethereum (ETH) miner Hive plans to transfer hashrate to other coins ahead of the merge. It’s because, after the merge, Ethereum will move from the proof of work to proof of stake consensus. So, miners wouldn’t have any use of Ethereum and have to shift to other POW coins that GPUs can mine. The last part is very important because not all coins can be mined with GPUs efficiently. For example, Bitcoin—It requires specialized mining hardware called ASIC miners.
Hive is looking for GPU mineable coins
Hive is a publicly listed company on NASDAQ, and they can’t take it slow as the ETH merge nears. The company stated in its August production report that it has already started to look for alternatives. Ethereum’s merge is scheduled for 15th September, and the final Bellatrix upgrade has also been implemented. We are on track, and the merge is unlikely to get delayed again.
The mining company has quite a lot of hash rate that it can contribute to other coins. It contributed 6.19 TH/s to Ethereum on average in the past 30 days. One of the coins it might be looking at is Ethereum Classic which is a POW coin and is also profitable to mine with GPUs.
The idea is to look for some coins that can give good profits and do not have too much volatility in price. Ethereum was one of the most profitable minable coins, so it will be difficult to look for an equally different alternative. Hive says that Ethereum mining has been 3-4 times more profitable for them as compared to BTC mining which has got most of their hash rate.
More about Hive
The first publicly listed cryptocurrency miner is HIVE Blockchain Technologies, which debuted on the Toronto Venture Exchange in 2017 and trades under the ticker HIVE. Since day one, the firm has been committed to an ESG approach and mines both Bitcoin and Ethereum using only green energy. With its distinctive HODL approach, which connects traditional capital markets with the blockchain and cryptocurrencies, HIVE aims to generate long-term shareholder value. It is currently trading at 5.59 CAD and is down around 75% from its highs this year.
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Also Read: Crypto winter is not slowing down global adoption.