Bitcoin Network Hashrate Reaches Record High Listing Mining Companies Account for Nearly 29

Bitcoin Network Hashrate Reaches Record High Listing Mining Companies Account for Nearly 29

Bitcoin Network Hashrate Reaches Record High Listing Mining Companies Account for Nearly 29

According to data from blockchain analytics firm Glassnode, the seven-day moving average of Bitcoin (BTC) hash rate has reached a historical high of 703 EH/s, marking the first time that the Bitcoin network’s hash rate has surpassed 700 EH/s.
Source: Glassnode
Hash rate, also known as hashrate, refers to the total computational power used for mining and processing transactions on a proof-of-work (PoW) blockchain. Since the halving event in April this year, Bitcoin’s hash rate has grown by nearly 13%.
Data shared by Bitcoin mining analyst Sebastian Ski shows that the top 12 listed mining companies contributed 28.9% of the total hash rate in September, exceeding 200 EH/s. The share of hash rate from these mining companies has been steadily increasing month by month, with a growth of nearly 10% since October 2022. Ski stated, “Publicly listed mining companies are taking market share from other mining companies worldwide.”
Ski also mentioned that the companies with the highest hash rate growth in the past 12 months were CleanSpark (CLSK), MARA Holdings (MARA), Riot Platforms (RIOT), and IREN, which aligns with the increase in monthly production volume of the top mining companies in September.
Bitcoin mining is one of the most challenging industries to maintain profitability in, as it is capital-intensive and is affected by the block reward halving that occurs every four years. Therefore, weaker miners will have to exit the Bitcoin network as continuing mining becomes financially unviable, while miners with the lowest energy costs or the most robust balance sheets will continue to increase their network share.
Hash price surges to two-month high
According to data from Glassnode, Bitcoin’s hash price recently surged to $50 per day per PH/s, the highest since August. The slight increase in hash price is due to the rise in Bitcoin’s price to $68,000 and the increase in transaction fees caused by on-chain minting activities of the Runes Protocol, which accounted for over 50% of total transaction fees on October 17.
“Hash price” is a term coined by Bitcoin mining services company Luxor, referring to the expected value generated by 1 PH/s or 1 TH/s of hash power per day. This metric quantifies the benefits that miners can expect to receive from a specific amount of hash power.
Due to the repeated record highs in hash rate, it is expected that the next mining difficulty adjustment on October 23 will increase by over 4%. Bitcoin’s mining difficulty adjusts every 2016 blocks based on the hash rate to ensure an average block is mined every 10 minutes.
Data source