In this week’s issue of State of the Network, we’ll take a deep dive into the shifting patterns and trends shaping the bitcoin mining industry around the world.
Key takeaways:
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The 2024 Bitcoin halving event had a substantial impact on miner profitability, with a sharp drop in BTC-denominated revenue per terahash (TH/s) of mining power, though the recent surge in Bitcoin’s price to over $105,000 has partially offset this impact.
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The performance of publicly traded Bitcoin mining stocks has exhibited higher volatility compared to Bitcoin’s price movements, with companies possessing stronger balance sheets and more efficient mining equipment, such as Hut8, Bitdeer, and Core Scientific, outperforming their peers.
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Analysis of the ASIC distribution on the Bitcoin network reveals a significant transition in mining hardware dominance, with the current landscape being largely dominated by the S19 series machines, demonstrating the rapid pace of efficiency improvements in mining hardware as operators continuously upgrade.
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Going forward, the ability of Bitcoin miners to adapt to the network’s programmed supply adjustments, optimize operations, and leverage technological advancements will be crucial to their long-term competitiveness and profitability.
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