While big Bitcoin miners including RIOT Platforms and Marathon Digital will experience declining production in 2024, CleanSpark is seeing growth.
As Bitcoin’s fourth halving approaches, Bitcoin mining giants are grappling with declining production as the market becomes more competitive and fees drop.
According to recent findings from CryptoQuant’s research report, the largest cryptocurrency mining companies such as RIOT Platforms, Core Scientific, Bitfarms, and Marathon Digital have all seen sluggish BTC production in 2024.
This decline is due to a combination of factors, including lower transaction fees on the Bitcoin network, increased network hash rate, and some operational outages. At the same time, CleanSpark boasts an exceptional increase in Bitcoin production amid an industry downturn, CryptoQuant points out.
CryptoQuant noted that some miners have expanded their selling activity ahead of the halving to ease financial pressure, with miners’ daily sales volume on some over-the-counter desks increasing to 1,600 BTC in late March, the highest sales volume since August. He added that he did. 2023.
Despite these challenges, competition in the sector remains fierce as Bitcoin’s network hash rate continues to rise, requiring more resources to maintain daily production levels. Data from CryptoQuant highlights “record competition for Bitcoin block rewards,” with hash rates surging since the previous halving in 2020.
Although the market faces fierce competition, experts suggest a different picture from previous years, noting that current cryptocurrency prices are providing relief to many miners. According to Hub 8 CEO Asher Genoot, the dynamics are different in 2022, indicating that current market conditions are supporting miners rather than leading to widespread bankruptcies.