Bitcoin Hashrate Growth Slows as Market Conditions Shift
A new report from TheMinerMag highlights a slowdown in Bitcoin’s hashrate growth, marking a shift in the mining landscape after months of rapid expansion.
In January, Bitcoin’s network difficulty experienced its first decline since September, signaling that while publicly traded mining firms continue to boost their hash power, their growth is not enough to offset the exit of smaller operators.
Despite this, total bitcoin (BTC) mining revenue remained steady at $1.4 billion for the month. Publicly listed mining companies, which collectively hold around 99,000 BTC (valued at approximately $9.7 billion), controlled roughly 30% of the network’s hashrate market share.
Intensifying Competition Among Leading Miners
The competition among top publicly traded mining firms has ramped up. Marathon Digital (MARA) maintained its lead with a realized hashrate of 41.65 EH/s, followed by CleanSpark at 34.77 EH/s. Riot Platforms, which has been expanding aggressively, is closing in with 31.27 EH/s.
“The competition within the 30 EH/s category is fiercer than ever, while the gap between these top players and mid-tier miners like Core Scientific, Cipher Mining, and Bitfarms continues to widen,” the report noted.
Market Consolidation and the Impact of Bitcoin’s Halving
The growing dominance of large mining firms comes as no surprise, given the impact of Bitcoin’s recent halving event. With mining rewards slashed in half, profit margins have tightened, making it increasingly difficult for smaller miners to stay competitive.
As a result, many mining operations are exploring alternative revenue streams, including hosting infrastructure for artificial intelligence (AI) and high-performance computing (HPC) firms.
Mining Hardware Imports and Future Outlook
The report also pointed out that mining hardware imports to the U.S. slowed in January, contributing to the stabilization of hashrate growth. However, companies like Blockchain Power Corp and AcroHash have been ramping up their infrastructure investments, particularly in cooling solutions from Bitmain.
Looking ahead, TheMinerMag anticipates another decline in mining difficulty in February, as lower profitability forces smaller operators to shut down.
