Bitcoin’s network hashrate is once again flirting with its all-time peak, reaching 665 exahash per second (EH/s) on Wednesday, September 4, 2024. That is merely 12 EH/s below the record of 677 EH/s set on July 25, according to data compiled from mining pools and blockchain explorers. The resilience of the hashrate is especially notable given the headwinds miners currently face: a sharp rise in mining difficulty and persistent compression in revenue per unit of hash.
Difficulty Hikes and Hashprice Woes
On August 28, Bitcoin’s mining difficulty increased by 2.99%, climbing from 86.87 trillion to 89.47 trillion – a new all-time high. Concurrently, Bitcoin’s price slipped about 1.5% over the past week, eroding miner profits further. The hashprice, or the daily value of 1 petahash per second (PH/s) of mining output, currently stands at $41.69. While this marks a 16.51% improvement from the $35.78 low on August 5, it remains historically depressed. The combination of higher difficulty and lower block rewards (following the fourth halving in April 2024) has squeezed margins for operators worldwide.
Miners Rely on Buffers to Keep Rigs Running
Despite the revenue slump, the total hashrate continues to climb, suggesting that miners are leveraging several buffers. Notably, the large fees collected on the day of the fourth halving provided a one-time windfall for some pools. More sustainably, new-generation mining rigs such as the Antminer S21 series deliver significantly higher terahash per second (TH/s) efficiency, reducing the breakeven hashprice. Additionally, publicly traded mining firms have raised capital through stock offerings, bolstering their balance sheets. As of Wednesday, Foundry contributed the largest share of hashrate at 201.25 EH/s, followed by Antpool with 167.47 EH/s. A total of 55 recognized mining pools were actively participating in the network.
Next Difficulty Adjustment Looms
The rising hashrate has shortened average block intervals, prompting the network to prepare for another difficulty increase. Based on current block times, the next adjustment scheduled for September 11, 2024 is estimated to rise by approximately 2.2%, though this estimate could change over the next five and a half days. If the difficulty increases as projected, it would compound the pressure on miners already operating on thin margins. Analysts warn that while a climbing hashrate is generally a sign of network health, the current dynamic could lead to a shakeout of older, less efficient mining hardware if Bitcoin’s price does not recover soon.
In summary, Bitcoin’s hashrate near all-time highs demonstrates remarkable resilience in the face of structural profitability challenges. The interplay between price recovery, difficulty trends, and miner adaptation will determine whether the network can sustain or even surpass its July record in the weeks ahead.