The Bitcoin mining sector faces a paradox: while mining difficulty decreases, competition intensifies. The 2024 halving has changed the rules, raising questions about miners' ability to meet investor appetites.
Current Situation in Bitcoin Mining
The recent decrease in Bitcoin mining difficulty from 126.9 trillion to 126.4 trillion symbolizes changes in the industry. Meanwhile, the hashrate reached a record 700 EH/s, indicating significant growth in computational power that affects the balance between block supply and available power. In 2020, the hashrate was around 120 EH/s, and over four years it has nearly sextupled. Miners are adapting to these new conditions: some are strengthening their positions, while others face challenges. For instance, CleanSpark increased its production by 9% in May, reaching 694 BTC, while MARA mined 950 BTC, retaining all of its production.
Impact of Halving on Mining
The 2024 halving reduced the reward for each block to 3.125 BTC, creating both positive and negative consequences for the industry. Smaller miners, dependent on older ASIC models and costly energy sources, find themselves on the verge of survival, with many shifting to cloud mining or joining pools. In contrast, larger companies like CleanSpark and MARA actively reinvest in their infrastructure, capitalizing on advanced technology and access to cheap energy. Thus, the halving creates a new divide in the ecosystem between large players and independent miners.
Outlook for Mining Until 2026
The Bitcoin market continues to generate interest from institutional investors. Key signals include 1,045 BTC bought by MicroStrategy and $1.3 billion injected into Bitcoin ETFs. Additionally, 59% of global mining operations are powered by renewable energies. Forecasts indicate that major players will continue to ramp up production in anticipation of significant price increases. An example of this is CleanSpark's goal to reach 50 EH/s with 100% in-house management of its infrastructure.
Despite volatility and economic challenges, Bitcoin remains resilient. Long-term holders continue to accumulate the asset, highlighting a new strategy among miners who prefer to hold their crypto assets. As mining conditions change and Bitcoin adapts to new realities, the industry continues to evolve.
