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Bitcoin’s Hashrate Soars to 600 EH/s, but Publicly Traded Miners’ Production Share Declines

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As Bitcoin’s monthly average hashrate reaches new heights, exceeding 600 EH/s, data suggests that publicly traded mining companies’ production share is gradually declining. According to TheMinerMag’s analysis, 18 major publicly traded mining companies mined less than 15% of Bitcoin’s block rewards in January 2022, which gradually grew to 23.28% in September 2023. However, in February, the production share of these companies decreased to 19.7% while Bitcoin’s average hashrate continued to rise.

Marathon Digital, the largest publicly traded mining company by proprietary hashrate, experienced significant downtime since mid-January, which contributed to the decline in production share. Even without the downtime, the production share would still be less than 21% in February. In contrast, those 18 companies mined 6,674 BTC in September and 5,578 BTC in February.

The hashprice, which soared from $60/PH/s to around $130/PH/s in December amid a transaction fee spike, has subsided to around $100/PH/s. With the recent hashprice rebound, older mining machines like M21S could be making some marginal gross profits again at an energy rate of $0.07/kWh. This may have led to an increase in private mining companies plugging in their machines ahead of the halving to squeeze out more profit from their older equipment.
However, with the upcoming halving, older generations of equipment are set to be phased out unless Bitcoin’s hashprice soars to over $200/PH/s. Bitcoin’s average hashrate in October was around 450 EH/s, and it has reached 600 EH/s in March. If the majority of the hashrate increase since October came from older equipment, a hashrate correction to the low 500 EH/s levels could occur after halving.

In conclusion, while Bitcoin’s hashrate continues to break records, the production share of publicly traded mining companies appears to be declining. As the halving approaches, it remains to be seen how the hashrate will be affected and whether private miners will continue to play a larger role in the mining landscape.

Source: TheMinerMag

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