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Bitcoin Hashrate Growth Hits Pause as Competition Heats Up

Bitcoin Hashrate Growth Hits Pause as Competition Heats Up

CoinspeakerCoinspeaker2025/02/20 16:00
By:By Godfrey Benjamin Edited by Julia Sakovich

The Bitcoin mining hashrate has halted as uncertainty masks months of steady growth.

Key Notes

  • The Bitcoin mining hashrate has taken a pause after months of growth.
  • Large Bitcoin miners control about 30% of the total hashrate.
  • Uncertainty in the Bitcoin mining industry is possibly forcing small miners out.

The Bitcoin mining hashrate is slowing down after months of fast growth. As reported by CoinDesk, quoting TheMinerMag data, the Bitcoin hashrate dropped in January, marking the first decline since September. While large mining companies continue to grow their operations, smaller miners find it harder to keep up.

Bitcoin Mining Hashrate: Public Miners Still in Control

Despite the slowdown, Bitcoin mining is still a billion-dollar industry, bringing in $1.4 billion in revenue last month. As reported by Coinspeaker, Bitcoin mining difficulty recently hit a record high of 110 trillion, showing intense mining activity. This surge in mining has played a big role in boosting revenue.

It is worth noting that the Bitcoin hashrate is the total computational power that miners uses to process transactions. This way, they get to secure the Bitcoin network with a higher hashrate implying better safety and vice-versa.

According to TheMinerMag data, publicly traded mining companies control about 30% of the hashrate. Collectively, they hold around 99,000 BTC, worth nearly $9.7 billion. These companies keep their grip on the industry, but competition is heating up.

MARA Holdings still leads the industry with a realized hashrate of 41.65 EH/s. Coinspeaker highlighted that the company mined 249 blocks in December and earned 890 Bitcoin in the same month. This marked its second-highest monthly block production since it started mining.

Though slightly contrasting the earlier data, as of December 2024, MARA’s Bitcoin mining power jumped by 15%, reaching approximately 53.2 EH/s. Meanwhile, CleanSpark hashrate increased to 34.77 EH/s while Riot Platform mining power rose to 31.27 EH/s.

Small Miners Struggle to Survive: What’s Next?

The report shows that big mining companies compete for more power, with most reaching around 30 EH/s. Meanwhile, smaller miners like Core Scientific, Cipher Mining, and Bitfarms, which are closer to 10 EH/s, continue to lag.

This comes after Bitcoin’s recent halving, which cut mining rewards in half and reduced profits. While large companies were prepared for this shift, smaller operators found it harder to stay afloat.

Many big miners are now looking for alternative revenue streams, such as hosting services for AI and high-performance computing firms. Meanwhile, the Riot platform has continued to ramp up its Bitcoin acquisition strategy and focused on enhancing its facility development.

Mining hardware imports to the US also slowed in January, contributing to the slowdown of hashrate growth. However, some companies, like Blockchain Power Corp and AcroHash, are still bringing in more cooling equipment from Bitmain.

The slowdown in importing Bitcoin mining hardware is linked to the global trade war between the United States and China. Notably, the President Donald Trump administration upon coming to power increased import tariffs and heightened regulatory scrutiny in several industries.

TheMinerMag report predicted that February could see another drop in mining difficulty as more small-scale operators may likely exit the market.

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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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