Bitcoin mining companies that include RIOT Platforms and Marathon Digital have seen an enormous decline in production throughout 2024, while CleanSpark has experienced an immense rise.
As the fourth halving of Bitcoin approaches, these stars in the industry are having to deal with decreased output, more competition, and fewer costs.
Recent information from CryptoQuant’s research report indicates that this year, BTC production has fallen down at significant cryptocurrency mining companies like RIOT Platforms, Core Scientific, Bitfarms, and Marathon Digital.
Bitcoin Surge in Miner Selling
Several things have led to this decline, such as reduced fees for transactions on the Bitcoin network, a rise in network hashrate, and a number of challenges with how things work.
On the other hand, CleanSpark has endured, increasing Bitcoin production even though the industry as a whole is down, as CryptoQuant’s research shows.
Because of the strain on their finances, some miners have increased the number of coins they sell in preparation for the split event.
CryptoQuant states that the amount of daily miners selling to over-the-counter desks reached 1,600 BTC at the end of March. This was the most significant amount of trading since August 2023.
Even with these challenges, there is still plenty of competition in the field, and Bitcoin’s network hashrate keeps going up. This means that more resources are needed to keep up daily production levels.
CryptoQuant’s data shows that there is more competition than ever for Bitcoin block awards. Since the previous halving event in 2020, hashrate has been increasing sharply.
Even though there is a lot of competition, experts believe the situation is different from years past. They point out that the current prices of cryptocurrencies are beneficial for many miners. Asher Genoot, CEO of Hub 8, says that things are different from what happened in 2022.
He states that the current market conditions are helping miners instead of causing a great deal of people to go bankrupt.
