A recent Jefferies report indicates that as of December 2024, U.S. miners controlled 25% of the global Bitcoin network. This growth is accompanied by increased revenues and new strategic approaches.
Increase in Bitcoin Mining Profits
In December, miners' profits increased due to a 15% rise in Bitcoin prices, outpacing the network's 6.5% hashrate growth. This made mining more profitable, but the increasing difficulty requires miners to be highly efficient and have access to cheap energy.
Diverse Strategies: Miners Adapt
The competition for resources has intensified with miners competing with AI developers for power grid access. Companies like Hut 8 and Hive Digitals are exploring leasing their data centers to AI firms, while others, like Marathon, are expanding internationally to regions with surplus, affordable, and sustainable energy sources to reduce energy costs.
Largest Drop in Mining Difficulty
In May, Bitcoin mining difficulty fell by 5.7%, marking the largest drop since December 2022. This was due to a 10% decline in hashrate following the previous adjustment, alongside an increase in block time to 10 minutes and 36 seconds.
U.S. Bitcoin miners continue to exert significant influence on the global network, adapting to industry changes and transitioning to sustainable energy sources to offset costs.
