What is the Bitcoin halving? Industry shift after the 4th mining adjustment

Bitcoin has been around for 12 years, and the history of this cryptocurrency cannot be separated from the mechanism called “halving.” Halving refers to an event where the block reward (the reward miners receive for verifying transactions and protecting the network) is cut in half. After the fourth halving in April 2024, the cryptocurrency mining industry is entering a new phase, with cost efficiency and energy efficiency becoming urgent priorities. Currently, Bitcoin is trading around $89,310 as of January 2026, experiencing a price adjustment phase different from initial expectations.

What is Halving: The Mechanism of Bitcoin Supply Limitation

The most notable feature of Bitcoin is that its total supply is fixed at 21 million BTC. This cap was intentionally designed to guarantee scarcity and prevent inflation. Halving is an event that gradually adjusts this supply pace. The first halving (2012) reduced the block reward from 50 BTC to 25 BTC, and since then, three halving events have occurred, decreasing the reward to 3.125 BTC. The fourth halving in April 2024 further reduces the reward to 1.5625 BTC, further limiting the influx of new mined BTC into the market.

Remaining Approximately 1.2 Million BTC: Approaching the Final Mining Stage

As of January 2026, the circulating supply of Bitcoin has reached approximately 19,977,737 BTC, with about 1.2 million BTC left to be mined toward the 21 million cap. This represents only about 5% of the total mining volume. However, in the process of mining these last 1.2 million BTC, miners face increased challenges due to the gradual reduction in rewards and a rapid rise in mining difficulty. According to MinerStat data, Bitcoin’s mining difficulty has now exceeded 102.3 trillion, having just surpassed the 100 trillion mark for the first time on November 5, 2024. The rising difficulty enhances network security but also puts pressure on miners’ profit margins.

Rising Mining Difficulty: Increased Burden on Miners

The sharp increase in mining difficulty is one of the key trends in the cryptocurrency industry. As difficulty rises, miners cannot mine as much Bitcoin with the same hash rate (computing power) as before. According to Coinshares (a European cryptocurrency investment firm), the rise in Bitcoin prices in 2024 increased the dollar-denominated block rewards, but profitability of mining significantly worsened. During periods when both revenue and hash prices declined, the entire industry faced major challenges. In July 2024, when BTC dropped to around $56,500, mining company Terawulf considered mergers due to declining profit margins, symbolizing the pressure on the industry as a whole.

Shift in Miners’ Business Strategies: Efficiency and AI Adoption

Despite the tough mining environment, major industry players are actively responding. Leading mining companies like Marathon Digital have announced efforts to improve efficiency and maintain competitiveness, including large-scale sales of mined Bitcoin in the second half of 2024. Meanwhile, Marathon has shifted to a long-term investment approach in Bitcoin, issuing $250 million in convertible senior bonds in August 2024 to fund Bitcoin purchases. This indicates that miners are transforming from mere miners into strategic asset holders. Across the industry, cost reduction and artificial intelligence adoption are progressing, potentially greatly improving mining efficiency.

Transition to Green Mining: Utilizing Renewable Energy

As exemplified by El Salvador, the cryptocurrency industry is gradually accelerating its shift toward green mining. Developing alternative mining methods that utilize geothermal volcanic energy is a strategy to achieve environmental sustainability and reduce costs simultaneously. This movement shows that the entire industry is exploring sustainability and economic efficiency, and halving is not just about adjusting mining rewards but also has the potential to lead to a structural reform of the industry.

The Bitcoin halving is a technical mechanism involving supply restrictions and reward adjustments, but its impact extends to overall industry management strategies and development policies. Through efforts such as improving energy efficiency, adopting AI technology, and utilizing green energy, the mining industry is evolving to the next stage.