Impact of ETH Merge on the Mining Sector

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Key Announcements from Major Mining Pools

Leading Ethereum mining pools have issued updates regarding the upcoming ETH Merge.

Note: ASIC miners require firmware updates to mine ETC. Bitmain's E9 Ethereum miner has released ETC-compatible firmware, currently supported by Antpool, F2Pool, and Poolin. Users can download the firmware from Bitmain's official website to begin mining ETC.

ASIC vs. GPU Mining Share

  1. BitPro CEO: ASIC-to-GPU ratio estimated at 1:9.
  2. Industry expert Michael Carter: ASIC-to-GPU ratio ranges between 2–3:7–8.

Mining Companies: Transition Strategies

  1. Mine alternative PoW coins (e.g., ETC, ERG, RVN).
  2. Shift to high-performance computing (HPC) data centers

    • Companies like Hut 8 and HIVE Blockchain are pivoting to HPC, acquiring data center assets to serve cloud providers like AWS.
  3. Provide HPC services for Web3 middleware (rendering, compute).
  4. Sell mining rigs and stake mined ETH in PoS

    • Validator nodes yield 7–13% returns via block rewards and MEV. Miners with <32 ETH can use staking services.

Feasibility of Mining ALEO

  1. Possible but costly—Requires multi-GPU server boards, multi-core CPUs, and high-bandwidth RAM.
  2. Comparative retrofit costs:

    • FIL storage rigs < Chia plotting rigs/AR < Ethereum GPU rigs.
  3. Challenges: Higher difficulty post-conversion and diminishing returns due to increased hash rate.

PoW Coins: Hash Rate and Market Trends

Post-Merge, ETH miners may transition to:

Recent Trends (2 Months)

| Coin | Hash Rate Growth | Price Change |
|-------|------------------|--------------|
| ETC | +127% | -10.97% |
| ERG | +97.6% | +115.9% |
| FLUX | +89.9% | +107.1% |

Key Observations:


Antminer E9 ROI Analysis

  1. Cost: $9,999 (Bitmain’s E9).
  2. Current ETC hash rate: ~307-day ROI. If difficulty doubles, ROI extends to ~650 days.

👉 Explore mining profitability tools


Industry Perspectives

  1. Large-scale miners may transition to HPC or Web3 services.
  2. Smaller miners face limited options:

    • Wait for ETHW pools.
    • Sell rigs and stake ETH.

👉 Stay updated on mining trends


FAQ

Q: Can Ethereum ASICs mine other coins post-Merge?

A: Yes, with firmware updates (e.g., ETC).

Q: Which PoW coins are most profitable post-Merge?

A: ERG and FLUX currently show higher price resilience vs. ETC.

Q: What’s the ROI for Antminer E9?

A: ~307 days at current ETC difficulty; could double if hash rate surges.