Bitcoin Hash Rate Hits All-Time-High

According to data from CoinWarz, the Bitcoin Bit rate - the total computing power securing the network - reached a new all-time high of over 1,000 exahash per second (EH/s) on January 3. This figure is nearly double the Bit rate of the network 12 months ago. According to CoinWarz, Bitcoin's Bit rate fluctuates around 510 EH/s in January 2024. At the time of writing, Bitcoin's Bit rate has dropped to around 780 EH/s. The increase in the network's Hash Rate indicates that Bitcoin Miners are devoting more computing resources to the blockchain, thereby improving the security of the network. Miners continue to expand production even after Bitcoin's halving event in April 2024, which reduced the mining reward from 6.25 BTC to 3.125 BTC per Block.

Weathering the Storm

In 2024, Bitcoin's robust performance offset some of the obstacles from the halving, particularly for well-capitalized mining companies like Riot Platforms and CleanSpark. JPMorgan said in a research report on December 10 that miners "have been acquiring weaker miners to increase their Bit rate in the short term and increase their power supply." Miners have also prioritized accumulating BTC on their balance sheets. In December, JPMorgan raised its price targets for four Bitcoin mining stocks to reflect the value of miners' electrical assets and their BTC holdings, the bank said. According to data from BitcoinTreasuries.NET, the Bitcoin mining companies Marathon, Riot, and CleanSpark hold BTC worth approximately $4.4 billion, $1.7 billion, and $910 million, respectively. FOLLOW US ON FACEBOOK | TELEGRAM | TWITTER