Bitcoin miners faced a testing second quarter in 2024, grappling with a 7% decline in hashrate following the halving event. Despite this setback, the industry witnessed notable efficiency gains and active market participation, as per findings from a Coinmetrics report.
Bitcoin Mining Dynamics and Efficiency Enhancements in Q2 2024
Following Bitcoin’s halving in April 2024, the network’s 30-day moving average hashrate dipped by 7%, from a peak of 626 exahash per second (EH/s) to 580 EH/s.
The Coinmetrics report underscores the challenges miners encountered in adjusting to reduced block rewards and a stable Bitcoin (BTC) price. Despite these hurdles, the sector experienced brief spikes in transaction fee revenues and significant strides in mining efficiency. A pivotal event during Q2 was Okx’s extensive consolidation of unspent transaction outputs (UTXO), which temporarily surged transaction fees.
During a span of three days, miners garnered $38 million in fees, providing substantial revenue support. Coinmetrics highlighted that while Okx’s maneuvers incurred costs, they offered a crucial respite for miners contending with depressed hash prices and subdued fee environments. The report also spotlighted Bitfarms, based in Toronto, for achieving notable efficiency gains.
Bitfarms reduced its incremental energy consumption from 35 joules per terahash (J/TH) to 27 J/TH in 2024. Additionally, the report detailed the evolving landscape among publicly traded mining firms. While industry leaders like Marathon Digital and Riot Platforms faced challenges in surpassing BTC performance in Q2, smaller entities such as Core Scientific, Iris Energy, and Terawulf recorded significant gains.
In summary, Coinmetrics researchers concluded that Bitcoin mining in Q2 2024 featured a mix of adversity and adaptation. Despite the halving event and stable BTC prices posing significant hurdles, the sector’s response through enhanced efficiency and strategic diversification underscores its resilience and evolution.
Share your thoughts on the Coinmetrics report and the current state of Bitcoin mining in the comments below.
