- 1 The Bitcoin revenue per terahash is nearing record lows.
- 2 Bitcoin network hash rate soaring as it tops 414 EH/s.
Bitcoin mining revenue has slid down at nearly a “never seen” level since the collapse of a well-known crypto exchange, FTX, in November last year. On the other hand, the hash rate climbed upwards and reached new highs. On the other hand, the Bitcoin miners seem like they are struggling to stay afloat in between plummeting profitability.
It must be noted that Bitcoin mining revenue or hash price is a measure of dollars earned per TH/s per day.
Bitcoin Network Update
In the Bitcoin network, the hash rate topped 414 exahashes per second (EH/s) on August 18, 2023, Friday, which marked a new peak for the metric. This upside mark has seen the network hash rate soaring over 50% from what it was at the beginning of this year. Also, it was 80% over the past 12 months, as the data from Blockchain.com, a cryptocurrency financial services company states.
Meanwhile, the network seems quite good in terms of security, but things are not so good for Bitcoin miners as revenue has fallen sharply, hitting levels when it fell to a market cycle low of around $16,500 in November last year.
Additionally, HashPriceIndex states that the revenue is only $0.060 per terahash per second per day. It is around half of what it was in early May 2023 when the Bitcoin Ordinals inscription frenzy caused a heavy demand for block space.
The Industry Experts’ Thoughts
Dylan LeClair, a market analyst, also shared his thoughts on the falling revenue and hash rate peak. As he said, “More efficient new rigs will keep being produced, but it’s almost time for the price to outpace.” It meant that “prices needed to adjust upwards to keep mining profitable at such high hash rates.”
On the other hand, the Bitcoin miners have reportedly been relying on funds from stock sales in the second quarter (Q2) to keep them afloat during the bearish market phase.
Last week, Bloomberg also shared a report that states the 12 major publicly traded miners raised about $440 Million through stock sales in Q2. Mark Jeftovic, a writer who runs the Bitcoin Capitalist newsletter, said, “Some mining companies are diluting shareholders at an excessive rate,” adding that “if they are diluting you faster than Bitcoin is going up, then you are going the wrong way on a treadmill.”
At press time Bitcoin (BTC) is trading at $25,985.03 with a 24-hour trading volume of $8.62 Billion. BTC is down 0.27% in the last 24 hours while has a live market cap of $505.92 Billion. It must be noted that in the last month, BTC experienced a bearish trend that showed over 10% price decline.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.