Bitcoin Hashrate Hits Record 700 EH/s as Public Miners Dominate the Network

Key Takeaways:

• Bitcoin Hashrate Reaches New Record: The Bitcoin network’s seven-day moving average hashrate reached an all-time high of 703 EH/s, a 13% rise since the April 2024 halving, indicating growing mining activity and network security.
• Public Miners Lead the Charge: Publicly traded Bitcoin miners, such as CleanSpark and Riot Platforms, now control 28.9% of the network’s hashrate, signaling their increasing dominance due to financial strength and operational scalability.
• Mining Profitability on the Rise: Bitcoin’s hashprice spiked to $50 PH/s, driven by Bitcoin price surge and increased transaction fees, offering miners higher returns despite the capital-intensive nature of the industry.
• Next Difficulty Adjustment Expected: With hashrate hitting new highs, the next mining difficulty adjustment is scheduled to rise by over 4%, maintaining the balance of block production every 10 minutes.
• Challenges for Smaller Miners: The competitive mining environment, especially after the halving, is forcing smaller miners out of the market, while those with lower costs and stronger financial backing continue to expand their market share.

The Bitcoin network recently hit a major milestone as its seven-day moving average (7DMA) hashrate surpassed 700 exahashes per second (EH/s) for the first time. This marks a 13% rise since the April 2024 halving, where the mining reward was cut to 450 BTC per day. This milestone signals increasing computational power being utilized in the mining process, an essential component of Bitcoin’s security and network validation.

Bitcoin Hashrate Surpasses 700 EH/s

Bitcoin hashrate, which measures the total combined computational power used in the Bitcoin network, recently reached an all-time high of 703 EH/s. This growth is largely attributed to an increase in Bitcoin mining activity, spurred by higher transaction fees and an uptick in Bitcoin price, which recently surged past $68,000. The higher profitability for miners, as reflected in the increased hashprice of $50 per petahash per second (PH/s), further drives the mining industry’s growth.

Bitcoin Hashrate | Source: Blockchain.com

Public Miners Increase Their Share of the Bitcoin Network

Publicly listed Bitcoin miners have seen remarkable growth, expanding their network share significantly over the past year. According to data by Bitcoin mining analyst Sebastian Ski, 12 of the largest public miners now contribute 28.9% to the total network hashrate, equivalent to more than 200 EH/s. This represents a nearly 10% rise since October 2022. Leading players like CleanSpark, MARA Holdings, and Riot Platforms have been the biggest beneficiaries of this expansion. The dominance of public miners in the space can be attributed to their ability to scale operations due to stronger financial backing, lower energy costs, and increasing production capabilities.

Read: What is crypto mining?

Rising Hashprice and Bitcoin Price Surge

Bitcoin’s mining profitability, or hashprice, jumped to a two-month high of $50 per PH/s, driven by the rise in Bitcoin price and a spike in transaction fees due to the on-chain minting of runes. This uptick in profitability coincides with an expected 4% difficulty adjustment scheduled for Oct. 23, 2024, further ensuring consistent mining activity.

Challenges and Opportunities for Bitcoin Miners

Bitcoin mining remains a highly capital-intensive industry, with miners facing regular halving events that reduce block rewards. This forces many smaller players with higher energy costs out of the market, giving an advantage to those with strong financial reserves and efficient operations. Publicly listed miners are particularly well-positioned to capture a larger share of the network in this challenging environment, leveraging their economies of scale to stay profitable.

The Path Ahead for Bitcoin Mining

As the Bitcoin network continues to evolve, the increasing participation of public miners and higher hashrates suggest that the industry is becoming more competitive. However, with Bitcoin’s price momentum showing volatility—falling below $67,000 after failing to break the $70,000 level—the mining industry must navigate fluctuating market conditions.

Miners and investors alike are eagerly watching the next phase of market developments. The run-up to the 2024 U.S. elections is expected to further impact Bitcoin price trajectory and, by extension, mining profitability.

Source: CoinDesk