Bitcoin mining achieved notable growth in 2024, even as the industry faced the challenges of the halving event, according to a report from H.C. Wainwright analysts Mike Colonnese and Dylan Scales.
Bitcoin’s price surged 121% year-over-year, closing the year at $93,390, outperforming all other asset classes. Key factors driving this rally included the launch of U.S. spot Bitcoin ETFs, an increase in institutional adoption, and the re-election of pro-Bitcoin President Donald Trump, as highlighted in the analyst note shared with crypto.news.
The Bitcoin network’s hash rate saw a remarkable 59% increase from the previous year, reaching 796 EH/s by the end of 2024. This growth was largely driven by public miners, whose operating capacity more than doubled to 235.8 EH/s. Public miners now account for 30% of the total network hash rate, up from 22% in 2023.
However, despite the increased mining capacity, the April halving event reduced block rewards, leading to a 32% decrease in BTC production among public miners. In total, public miners produced 48,333 BTC in 2024, a significant drop from 71,447 BTC in 2023. On a positive note, BTC reserves on public miners’ balance sheets rose by 128%, reaching 89,599 BTC by year-end.
In December, public miners boosted their operating hash rate by 8.6%, producing 3,929 BTC, which marked a 6.6% increase from November. However, transaction fees, which make up a smaller portion of miner revenue, dropped by 8.5% month-over-month, contributing only 2.7% to total block rewards.
Weekly trends through January 12, 2025, showed some volatility, with Bitcoin’s price falling 4.1% to $94,759 after the U.S. Department of Justice approved the sale of seized Silk Road BTC. Mining stocks saw a 7.7% decline, and the network hash rate dropped 4.4% to 777 EH/s.
The report underscores the resilience of Bitcoin miners in the face of rising network difficulty and market pressures, setting the stage for a dynamic 2025 in the Bitcoin mining industry.
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