Leading Bitcoin miners witness dip in 2024 production, CryptoQuant says

In the year 2024, significant Bitcoin mining companies such as RIOT Platforms and Marathon Digital encounter a decrease in their output. However, CleanSpark bucked this trend with an increase in production.

Approaching Bitcoin‘s fourth halving, significant Bitcoin miners are struggling with decreased output due to heightened competition and diminishing fees in the industry.

In their research report published in 2024, CryptoQuant discovered that major Bitcoin mining companies such as RIOT Platforms, Core Scientific, Bitfarms, and Marathon Digital experienced a decrease in Bitcoin production.

The causes of this decrease are a blend of several factors: lower transaction fees on the Bitcoin network, increased network hashrate, and some operational interruptions. In contrast, CleanSpark bucked the trend by experiencing growth in Bitcoin mining production during the industry’s slump, as reported by CryptoQuant.

Leading Bitcoin miners witness dip in 2024 production, CryptoQuant says

To relieve financial strain, certain miners have intensified their Bitcoin sales prior to the halving event, according to CryptoQuant. Notably, these miners have been selling large quantities of Bitcoin (approximately 1,600 BTC) to some over-the-counter buyers in late March – a level not seen since August 2023.

In spite of the obstacles, the level of competition in the Bitcoin sector remains intense. The hashrate of Bitcoin’s network keeps climbing higher, forcing miners to invest more resources daily just to keep up with production. Data from CryptoQuant shows that “competition for Bitcoin mining rewards is at an all-time high,” and the hashrate has been on a steady rise since the last halving in 2020.

In contrast to the fierce competition in the market over the past few years, industry insiders now see a different situation emerging. They point out that today’s crypto prices bring much-needed respite to miners, according to Asher Genoot, CEO of Hub 8. The current market scenario appears to be more favorable for miners than in 2022, with fewer instances of widespread bankruptcies.

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2024-04-04 10:59