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Bitcoin miners experienced a challenging second quarter in 2024, marked by a 7% decline in hashrate following the halving event. Despite this, the industry saw significant efficiency improvements and notable market activity, according to a Coinmetrics report.
Bitcoin Mining Faces Pressures and Efficiency Improvements in 2024 Second Quarter
In the aftermath of Bitcoin’s halving in April 2024, the network’s 30-day moving average hashrate dropped by 7%, from an all-time high of 626 exahash per second (EH/s) to 580 EH/s. Coinmetrics researchers say the decrease in hashrate highlights the pressures faced by miners as they adapt to reduced block rewards and a stagnant bitcoin (BTC) price.
The Coinmetrics report indicates that, despite these challenges, the sector witnessed temporary boosts in transaction fee revenue and notable advancements in mining efficiency. One significant event during Q2 was a large-scale unspent transaction output (UTXO) consolidation by Okx, which resulted in a temporary spike in transaction fees.
Over a three-day period, miners earned $38 million in fees, significantly bolstering their revenues. Coinmetrics noted that such operational moves, although costly for Okx, provided a much-needed reprieve for miners grappling with low hash prices and subdued fee markets. Coinmetrics researchers also noted that Bitfarms, a Toronto-based mining company, demonstrated significant efficiency improvements.
The mining study highlights how Bitfarms reduced its incremental energy consumption from 35 joules per terahash (J/TH) to 27 J/TH in 2024. The report also detailed the shifting dynamics among publicly traded mining companies. While major players like Marathon Digital and Riot Platforms struggled to outperform BTC in Q2, smaller firms such as Core Scientific, Iris Energy, and Terawulf saw substantial gains.
In conclusion, Coinmetrics researchers suggest that Bitcoin’s mining landscape in Q2 2024 was characterized by a blend of adversity and adaptation. While the halving event and stagnant BTC prices posed significant challenges, the industry’s response through efficiency improvements and strategic diversification highlights a resilient and evolving sector.
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