Increased Profitability for Existing Miners

• Decreased competition for block rewards
• Potentially lower difficulty adjustments
• Higher share of transaction fees for remaining miners[1]

Opportunities for New Entrants

• Reduced competition may lower barriers to entry
• Potential to acquire mining equipment at lower costs from shuttered operations[2]

Challenges for Smaller Operations

• Ongoing chip shortages limiting access to efficient hardware[5]
• Rising energy costs squeezing profit margins[1]
• Need for economies of scale to remain competitive

Volatility and Uncertainty

• Recent price drops have left only a few large mining companies profitable[1]
• Future halving events will further reduce block rewards[2]