Reportedly, the majority of Bitcoin miners are struggling as both the hashrate and the cost to power Bitcoin mining rigs increase rapidly. This presents a major issue for smaller miners but less so for big players.
The current trade price of Bitcoin is 127% higher over the last 12 months. In the last 7 days, the price surged nearly 12%, injecting confidence among miners to resume mining for profit at this increased price level.
#Bitcoin price is still 127% high over the last 12 months period pic.twitter.com/VPuVFAPjoU
— Bitcoinik (@Bitcoinikdotcom) September 15, 2024
-----Cryptonews AD----->>>
Sign up for a Bybit account and claim exclusive rewards from the Bybit referral program! Plus, claim up to 6,045 USDT bonus at . https://www.bybit.com/invite?ref=PAR8BE
<<<-----Cryptonews AD-----
Recently, the hashrate, which measures the mining difficulty, surged to an all-time high of 92.6 terahashes, increasing by over 10% since early July.
These reports suggest that most Bitcoin mining firms face significant revenue challenges. In August, Jefferies reported an 11.8% drop in daily revenue per exahash, signaling that miners are earning less for their efforts. This revenue drop is compounded by Bitcoin’s halving event in April, which cut mining rewards by 50%. As a result, many firms, including Marathon Digital and Riot Platforms, have seen their stock prices fall by 30% and 53%, respectively, in 2024, leading to financial strain and even bankruptcies in the industry.
Amid this, some remain optimistic. Marathon’s CEO, Fred Thiel, noted that newer mining rigs are doubling the hashing power of older models without using more energy.
Given this landscape, many mining firms are expanding into other sectors. Some are venturing into artificial intelligence (AI), while smaller players are waiting for a significant pump in Bitcoin’s price to generate enough revenue.
Historically, Bitcoin’s price has surged by over 100% following each Bitcoin halving event. These halvings, which reduce the mining rewards by 50%, create scarcity and often trigger a bull run. On behalf of the past data, it is expected that Bitcoin trade price will experience a significant price pump in the months following its most recent halving, continuing this trend.
Read also: Bitcoin Price Rises Despite $263M Net Outflow: Could This Be the Start of a Major Bull Run?
Bitcoin miners struggling as hashrate increases & revenue drops, shifting focus to AI
https://bitcoinik.com/bitcoin-miners-struggling-as-hashrate-increases-revenue-drops-shifting-focus-to-ai/feed/
https://bitcoinik.com/bitcoin-miners-struggling-as-hashrate-increases-revenue-drops-shifting-focus-to-ai/feed/
