Mining software companies try to reduce costs of Bitcoin mining meeting the challenge brought about by the cutting in half of the block rewards.

Hashflare has joined the list of Bitcoin mining companies that are working out a way to cut the cost of energy needed for their operations.

Energy supply has been a topical issue of late for mining operations particularly around the halving period as it is a great determinant to ensure a lower operational cost and to maximize profit.

A report says some of the mining companies in parts of China recently met to discuss how to “share power grid and local power resources” as well as other issues such as hydropower, wind energy, power tariff terms, specific mining co-operations.

The offer of cheap electricity will attract investment from Bitcoin mining companies particularly in in China where roughly 82% of globally-produced hash share is concentrated.

New products

Mining software companies Bitmain has introduced new products including its latest Antminer S9 which has been dubbed the world's most power-efficient Bitcoin miner, into the market to meet the challenge brought about by the cutting in half of the block rewards.

After Genesis Mining tested a larger batch of its X11 ASIC, it upgraded all its ASIC X11 clients from one year to two year contracts with a promise to offer them the electricity cost for the second year free of charge

Hashflare slashed its energy cost to enable its miners earn more profit. In an email to its SHA-256 contract holders, the mining company informed them thus:

“As Bitcoin mining reward halving is now history, it is our duty to keep everything running smoothly for all of you. For the last couple of months, we have been working hard installing new energy efficient SHA-256 hardware to our data centers, which will allow us to reduce our electricity expenses. 

“For that reason, we are proud to announce that the Maintenance and Electricity Fee (MEF) for SHA-256 contracts is now reduced by 25%, from 0.008 USD per 10 GH/s to 0.006 USD per 10 GH/s. The work is not done yet and we are still looking forward to achieve better results in the future.”