Idle Bitcoin Mining Capacity May Trigger Margin Trap as Miners Restart Operations

Nearly one-fifth of all Bitcoin mining power is currently idle, and turning it back on could lead to a margin trap for miners.

Luxor estimates that about 235 exahashes per second (EH/s) of capacity in specialized Bitcoin mining machines is sitting idle. This equipment has been switched off due to various reasons, including being uneconomic, deliberately curtailed, in transit, or under maintenance.

The August's Bitcoin rally improved the revenue available from mining, while Texas's summer window for avoiding peak-related transmission charges runs through September. As a result, some miners may restart their operations, but this could eventually add competition for those that stayed online and reduce the reward for restarting.