Miners Take a Breather Report Bitcoin Hash Rate and Mining Difficulty Expected to Decrease in Summer Competition to Ease
Coindesk reported that due to the arrival of the North American summer heatwave and the initial weakening of competition among miners after the halving, the Bitcoin network’s computing power has seen a significant decline in recent weeks. Luxor Technologies, a data analysis platform, pointed out that mining difficulty and competition may also gradually ease, providing support for Bitcoin market prices.
Summer Bitcoin Network Computing Power Declines
Mining Difficulty May Be Adjusted
Major Miners Actively Merging and Acquiring
Conflict between Mining Companies and Politics
As the impact of the Bitcoin halving event continues to brew, the profitability of major miners has also significantly declined over the past two months in an already overcrowded industry.
Bitcoin Miners’ Average Daily Income (7-day moving average)
At the same time, despite some miners upgrading their mining machines on a large scale to resist the continued increase in competitive pressure and temporarily increase the computing power of the Bitcoin network, according to data from Hashrate Index, the Bitcoin network’s computing power has been continuously declining since reaching a historical high in May, down by about 10% to 589 EH/s.
Bitcoin Network Computing Power Performance over the Past Year
In response, analysts at Blockware Intelligence stated that, in addition to this, Bitcoin computing power usually performs stably or decreases during the North American summer:
ASICs are large, powerful mining machines that may reach very high temperatures without proper cooling measures.
“Heat dissipation is the primary challenge currently facing Bitcoin miners,” added Luxor analyst Colin Harpe. “As we enter the summer in the United States, we expect to see whether the heatwave will force miners to reduce operations, thereby suppressing computing power growth, as we saw in 2022 and 2023.”
As a result, miners must face a choice: to consume more electricity costs to build cooling measures, or to reduce the scale of operations to lower operating costs.
Harpe anticipated that miners in the United States may reduce their operations due to increased energy costs. If computing power continues to decline, miners may welcome a reduction in mining difficulty this week, which may be advantageous for some miners, he added. “The above data may also lead to a preceding slowdown in mining industry competition.”
Faced with the decline in profitability of miners after the Bitcoin halving and the current bleak situation in the crypto market, major miners are also committed to further mergers and integration.
Among them, mining company CleanSpark’s latest announcement stated that it will acquire five Bitcoin mining facilities in Georgia for $25.8 million, potentially increasing the company’s total computing power to over 20 EH/s by the end of June.
CleanSpark CEO Zach Bradford stated:
“These locations not only enhance our ability to cooperate with local energy infrastructure, but also ensure the achievement and realization of our mid-year computing power goals.”
On the other hand, the malicious acquisition case involving mining companies Riot Platforms and Bitfarms continues to heat up.
Last week, Trump met with large mining companies such as Riot Platforms and CleanSpark, promising to protect Bitcoin mining and expressing his hope that all remaining unmined bitcoins will be mined by American companies.
During a fundraising event and his 78th birthday earlier this month, Trump repeatedly emphasized that he would be the “cryptocurrency president,” ending Biden’s war on cryptocurrency.
Riot Platforms
CleanSpark
Bitfarms
Mining
Bitcoin
Mining company
Miner
