The Bitcoin mining industry is gearing up for one of its most transformative periods as the network approaches the 2024 halving event. In a move that signals the sector’s commitment to hardware innovation, semiconductor company Chain Reaction and Bitcoin mining systems leader ePIC Blockchain have announced a strategic collaboration to produce next-generation hashing systems designed to keep miners competitive in an increasingly challenging environment.
TL;DR
- Chain Reaction and ePIC Blockchain partner to build next-gen Bitcoin mining hashing systems
- New systems will be powered by Chain Reaction’s EL3CTRUM ASICs, expected in late 2023
- Collaboration comes as Bitcoin network approaches one zettahash per second in total computation
- Partnership targets increased efficiency ahead of the projected mid-2024 Bitcoin halving
- Current mining revenue stands at approximately $0.075 per terahash, down from peak levels above $0.12
Strategic Partnership for Mining Efficiency
Announced on May 17, 2023, the collaboration between Tel Aviv-based Chain Reaction and Toronto-based ePIC Blockchain aims to deliver high-performance hashing systems specifically designed for Bitcoin mining. The new systems, expected to launch in late 2023, will be built on Chain Reaction’s proprietary EL3CTRUM ASICs — a chip architecture the company describes as purpose-built for low-power, high-performance compute applications.
The timing of this partnership is hardly coincidental. With Bitcoin trading at approximately $27,400 and the network’s total hashrate pushing toward the one zettahash per second milestone, mining operations face mounting pressure to squeeze every last watt of efficiency from their hardware. The upcoming halving — projected for mid-2024 — will cut block rewards in half, making operational efficiency the single most critical factor in mining profitability.
Industry Leaders Combine Expertise
Chain Reaction brings deep expertise in custom ASIC design and semiconductor engineering, while ePIC Blockchain has established itself as a leader in Bitcoin mining system design. ePIC currently offers customized mining rigs, including systems based on Intel’s Blockscale technology, along with fleet enhancement tools that streamline and automate mining operations.
“We are excited to partner with ePIC Blockchain to deliver the next generation of high-performance hashing systems for Bitcoin mining,” said Alon Webman, CEO of Chain Reaction. “Bringing together our cutting-edge ASICs with ePIC’s expertise in BTC hashing systems enables us to provide data centers with a great opportunity to add capacity.”
Jim Seto, CEO of ePIC Blockchain, emphasized the company’s commitment to pushing the boundaries of mining efficiency. “We are committed to driving innovation in the BTC mining industry with high efficiency hashing systems,” Seto stated. “We are excited to build systems based on Chain Reaction’s best-in-class products and utilize their engineering expertise.”
The Halving Looms Large
The Bitcoin mining landscape is undergoing a fundamental shift as the network matures. Current mining revenue sits at approximately $0.075 per terahash, a significant decline from the peak of more than $0.12 per terahash seen in previous cycles. This compression has forced smaller and less efficient operators out of the market, while larger operations invest heavily in next-generation hardware to maintain margins.
The mid-2024 halving will reduce the block reward from 6.25 BTC to 3.125 BTC, effectively cutting mining revenue overnight unless Bitcoin’s price appreciates significantly. This dynamic has created a surge in demand for more efficient mining equipment, as operators race to upgrade their fleets before the reward reduction takes effect.
Chain Reaction and ePIC’s collaboration directly addresses this need. By combining advanced ASIC technology with optimized system design, the partnership aims to deliver hashing systems that can maintain profitability even in a post-halving environment with reduced block rewards.
Broader Mining Industry Trends
The partnership between Chain Reaction and ePIC reflects a broader trend in the Bitcoin mining industry toward vertical integration and hardware specialization. As the network has grown, the days of hobbyist mining with consumer-grade GPUs have long since passed. Today’s mining operations are sophisticated data centers that require custom-designed hardware, advanced cooling solutions, and strategic energy procurement.
Companies that can deliver improvements in joules-per-terahash efficiency hold a significant competitive advantage in this environment. The EL3CTRUM ASIC platform represents Chain Reaction’s bet that purpose-built silicon can deliver meaningful efficiency gains over generic mining chip designs.
Why This Matters
The Chain Reaction-ePIC partnership is a clear signal that the Bitcoin mining industry is not slowing down — it is evolving. As the halving approaches and network difficulty continues to climb, the companies that invest in cutting-edge hardware today will be the ones that survive and thrive tomorrow. For miners, the message is straightforward: efficiency is no longer optional, it is existential. Partnerships like this one ensure that the tools to achieve that efficiency are on the way, even as the economics of mining grow increasingly demanding.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency mining involves significant risk and technical complexity. Always conduct your own research before making any investment decisions.
mining revenue at $0.075/TH. brutal margins. any hardware that doesnt cut joules per terahash is dead on arrival post-halving
$0.075 per TH is razor thin. post halving you either have sub-20 J/TH hardware or you are mining at a loss. no middle ground
sub-20 J/TH or die trying. the S9 was 85 J/TH. we came a long way but the margins keep getting tighter every cycle
S9 at 85 J/TH to sub-20 now. 4x efficiency gain in one hardware cycle. but the economics still squeeze small miners out every halving
tel aviv and toronto collaborating on ASICs. interesting to see mining hardware R&D spreading outside shenzhen for once
tel aviv semiconductor talent is underrated. chain reaction hiring from intel and qualcomm israel gave them a real edge in ASIC design
israel and canada teaming up to challenge chinese ASIC dominance is genuinely interesting. more geographic diversity in hardware is good for the network
exactly. intel tried with blockscale and quit within a year. chain reaction actually has a shot because of the israeli chip design talent pool