After months of rapid expansion, Bitcoin’s hash rate slowed down in January, according to the latest report from TheminerMag.
The network’s difficulties saw its first decline since September, indicating that although publicly listed companies have continued to increase their hashish power, their growth is not enough to compensate for capitulation of others, probably smaller operators.
The total income made by Bitcoin (BTC) mining remained stable at $ 1.4 billion for the month. Public traded mining companies that have a total of 99,000 Bitcoin (worth about $ 9.7 billion), accounted for approx. 30% of the hashrate market share in January.
Competition between the largest listed companies has also increased.
The leading mining company, Marathon Digital (Mara), retained its top location with a realized hash rate of 41.65 EH/S, followed by Cleanspark of 34.77 EH/S. Riot platforms that have expanded aggressively shut in with 31.27 EH/S.
“In particular, the competition is heated within the 30 EH/S group like never before, while the gap between the 30 EH/S level and the 10 EH/S group -consisting of core science, chiffer mining and bitfarm -continues to expand,” said The report.
The top miners who take more market share are hardly a surprise as the recent halving event has cut Bitcoin Mining Rewards by half and pressed the industry’s profit margin, even with the BTC award near $ 100,000. In such an environment, it is difficult for smaller players to compete with large operations already placed to dominate the market. In fact, many miners are already looking for other sources of income, such as hosting machines for AI and HPC companies.
Read more: Bitcoin -Halvation is a ‘Show me the money’ moment for miners
The report also said that imports of mining into the United States also slowed down in January, a factor that contributes to the stabilization of hashrate growth. However, some companies, including Blockchain Power Corp and Acrohash, have imported a significant amount of cooling infrastructure from Bitmain.
Looking ahead, Themine Taste predicts another decline in February, as some smaller mining operators end the market due to lower profitability.
Read more: Bitcoin Mining is a game of survival, consolidation and potential AI -Diversification: Bernstein
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