The Bitcoin mining sector faces a strange paradox. On one hand, the mining difficulty is adjusting downwards. On the other, competition intensifies in a market where miners must produce relentlessly. The April 2024 halving has changed the rules of the game. So, are miners producing enough to satisfy investors’ appetite? Or are they folding under economic pressure? It is time for an examination.
Bitcoin mining difficulty recently dropped from 126.9 T to 126.4 T. A marginal decrease, indeed, but symbolic, as it comes after a historic record. Since May, the network has shown unprecedented computing power, peaking at 700 EH/s in early June.
Historically, difficulty adjusts the balance between block supply and available power. As more machines activate, the algorithm makes the equation harder to solve. In 2020, hashrate hovered around 120 EH/s. In four years, network power has nearly sextupled.
Faced with this increase in power, miners are adapting. Some resist, others collapse. CleanSpark, for example, increased its production by 9% in May, reaching 694 BTC.
We increased our month-end hashrate to 45.6 EH/s, up 7.5% sequentially, while improving average fleet efficiency. We expanded our Bitcoin treasury to over 12,500 BTC […] We also secured an additional 72 megawatts of contracted power, bringing our total to 987 megawatts […].
MARA, meanwhile, mined 950 BTC the same month while retaining all of its production. A strategy called “twin-turbo” according to its CFO: produce and hold, without selling.
The 2024 halving halved the reward for each block: now 3.125 BTC. While this algorithmic rule is designed to contain bitcoin inflation, its short-term effects on the industry are brutal.
Smaller miners, dependent on old ASIC models or costly energy sources, find themselves marginalized. Many migrate to cloud mining or join pools to survive. Conversely, industry giants arm themselves. CleanSpark and MARA reinvest in their infrastructure, capitalizing on their technological lead and access to low-cost energy.
The halving thus created a new divide in the ecosystem. On one side, the vertically integrated behemoths. On the other, independents seeking pooling. The reduction in rewards does not signal the end of mining, but a rewriting of its internal rules.
This resilience comes with a paradigm shift: several publicly traded companies choose to keep their bitcoins. Mining is no longer just a cash flow but a strategic accumulation vector. A way to anticipate future price increases.
Bitcoin oscillates around 105,000 and analysts scrutinize its slightest movements. Yet, beyond the charts, a trend emerges: industrial consolidation and rising institutional investment.
Key signals:
These figures show one thing: the industry adapts, electrifies, strengthens. Rising prices encourage investments but also the transition to cleaner energies. Major players bet on a long-term vision by turning their production into strategic reserves.
Bitcoin resists. Despite volatility, despite crises, it maintains its waterline. Long-term holders continue to buy, reinforcing miners’ strategies who now prefer to hold rather than sell. An unexpected alignment is emerging between patient investors and rational producers. Mining changes, bitcoin adapts, and continues to defy predictions.
