- Bitcoin Hash rate hit a new record high of more than 742 exahashes per second (EH/s).
- The high difficulty rate that comes with an increased hashrate is a major problem for profitability.
On September 1, 2024, the hashrate of the Bitcoin network, which is the total computing power used to secure the Bitcoin network, hit a new record high of more than 742 exahashes per second (EH/s).
As expected given the ongoing trend toward application-specific integrated circuits (ASICs) and other forms of high-performance mining gear, CryptoQuant data shows that the hashrate has been gradually increasing since 2021.
Cost of Mining Bitcoin Surges
Since miners are compelled to improve their mining rigs, extend their operations, and consume more energy to stay competitive as the network hashrate grows, the cost of mining Bitcoin (BTC) also rises.
The high difficulty rate that comes with an increased hashrate is still a major problem for miner profitability. Revenue for miners hit an all-time low of $827.56 million in August 2024, making it the poorest month for profitability since September 2023.
A recent research by JPMorgan further confirmed the miners’ financial woes, showing that they were experiencing a revenue pinch due to factors such as rising energy prices and a reduced block subsidy.
Out of the five Bitcoin mining businesses examined, the report found that Riot Platforms had the highest expenditures per Bitcoin at about $62,000 and MARA at around $55,700.
Mining businesses are exploring various strategies to increase income and stay afloat in the face of these high expenses and decreased earnings. A high debt-to-equity ratio may be disastrous for a mining company, so many are shifting their focus from issuing corporate debt to selling stock to investors.
In light of declining mining profits, several mining corporations are looking to diversify their operations into high-performance computing and artificial intelligence.
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