Bitcoin hashrate hits record 972 EH/s as US miners capture 30% of market

Bitcoin’s Network Activity Hits New Heights Amidst Price Struggles

Network Activity Surges

Bitcoin’s network activity has been climbing to new heights, with its hashrate reaching a historic milestone of 972 exahashes per second (EH/s). According to data from Cloverpool, this surge in hashrate signals a growing commitment from miners, who continue to invest in infrastructure despite unfavorable market conditions.

Growing Commitment from Miners

The increase in hashrate highlights the network’s enhanced security and resilience, driven by a competitive mining environment. US-listed miners have gained a stronger foothold in the global mining landscape, with VanEck’s head of research, Mathew Sigel, sharing data showing that they now account for 30% of Bitcoin’s total hashrate, an all-time high. Since the last halving event, these firms have collectively boosted their market share by 800 basis points, reflecting increased capital allocation and operational scale.

Decline in Marginal Revenue

However, the growth in mining power hasn’t translated into higher profits for miners. Pierre Rochard, former Vice President of Research at Riot Platforms, pointed out that the marginal revenue per megawatt-hour (MWh) for the most efficient mining rigs has dropped from around $200 to $150 this year. The decline stems from two major factors, including Bitcoin’s falling price and increased network competition, which are cutting into miners’ bottom lines.

Falling Price and Increased Competition

In the past 30 days, Bitcoin has lost around 10% of its value, falling to roughly $81,000, based on data from CryptoSlate. The shrinking profit margins suggest that only miners with access to low-cost energy and efficient operations will remain competitive in the current climate.

Conclusion

As the cryptocurrency market continues to experience fluctuations, it’s crucial for miners to adapt to the changing landscape. While the growth in hashrate is an encouraging sign, the decline in marginal revenue per MWh highlights the need for miners to optimize their operations and reduce costs. Only those with the most efficient infrastructure and lowest energy costs will be able to maintain profitability in the current environment.

FAQs

Q: What is the significance of Bitcoin’s hashrate reaching 972 EH/s?

A: The hashrate is an indicator of the total computing power dedicated to mining Bitcoin. Reaching 972 EH/s is a significant milestone, signifying a growing commitment from miners to the network.

Q: How do US-listed miners contribute to the global mining landscape?

A: US-listed miners now account for 30% of Bitcoin’s total hashrate, an all-time high. They have collectively boosted their market share by 800 basis points since the last halving event, reflecting increased capital allocation and operational scale.

Q: Why has the marginal revenue per MWh for mining rigs decreased?

A: The decline in marginal revenue per MWh is due to two main factors: Bitcoin’s falling price and increased network competition. These factors are cutting into miners’ bottom lines, making it crucial for them to optimize their operations and reduce costs.