The increasing bitcoin hashrate indicates a growing trust in the cryptocurrency’s worth as mining technology advances. Despite market uncertainty, Bitcoin miners report an increasing hashrate, indicating greater confidence in BTC’s future value. The hashrate is the processing power needed to resolve mathematical issues.
Russell Cann, Chief Development Officer of Core Scientific, believes that a higher hashrate indicates more faith in Bitcoin’s long-term worth. As hashrate increases, the Bitcoin network becomes more secure, reducing risks and increasing its dependability as a value store. This enhanced security can boost investor trust and increase accumulation by people and institutions viewing Bitcoin as a secure asset.
Cann emphasized the importance of raising hashrate for miners’ profitability, citing lower operating costs, such as energy and equipment costs, and stable or increasing Bitcoin prices. This financial security allows miners to retain their Bitcoin, resulting in a recent increase in holdings, according to Cann.
A growing hashrate is reported by US miners
US-based mining company CleanSpark reported a 287.9% growth in its hashrate year over year, with 6,668 Bitcoin mined in December and 7,024 in 2024. The company’s Bitcoin mining holding balance increased by over 236% from 3,000 Bitcoin in December 2023 to over 10,000 last month, according to CTO Taylor Monnig.
The company, Riot, has become the second largest public mining company by production, with a hashrate of over 39 EH/s. With nearly half of that in its treasury, it demonstrates growth and capital management. Riot, a Bitcoin mining startup, has also shown consistent growth in output.
Riot reported a 155% increase in its deployed hashrate for 2024, attributed to increased production efforts and network difficulty following Bitcoin’s April 2024 halving event across multiple Texas and Kentucky mining facilities.
The Hashrate of Bitcoin Mining Is Anticipated to Rise in 2025
The United States held over 40% of the Bitcoin network’s global hashrate at the end of 2024, with Foundry USA, a US-based miner, growing its hashrate from 157 EH/s to 280 EH/s by December, making Foundry the largest mining pool by hashrate, controlling 36.5% of the total Bitcoin network hashrate.
Cann predicts a continued rise in BTC hashrate in the coming year, attributed to institutional involvement in Bitcoin, large-scale mining operations, increased optimism in the industry, and advancements in mining technology. Companies with capital are deploying more mining rigs, highlighting the industry’s resilience and growth potential.
New-generation mining rigs with improved energy efficiency and computational performance are enabling miners to increase network hash power at a lower cost, according to Luxor Technology CEO Nick Hansen, who reports that the large-scale deployment of these X21 series and MicroBT’s M6X is driving network hashrate growth.
Bitcoin miners are achieving 50% more hashrate per MW than previous-generation machines, with government nations’ interest in mining and building a Bitcoin reserve being influential.
Bitcoin’s high interest level is attracting new players, increasing hashrate, and indicating confidence in its value. However, this also makes the mining process more competitive, driving miners to seek efficiency and lower operational costs to stay profitable, according to Cann.
Increased Openness in Bitcoin Mining Activities
Bitcoin’s hashrate has increased significantly, with only 16.7% of total hashrate attributed to known entities in January 2022. By December 2024, 31.6% of global Bitcoin production could be linked to 19 publicly traded mining companies that disclose their proprietary performance monthly.
Bitdeer, a publicly listed mining company, is committed to increased transparency in its mining rig production this year, according to Jeff LaBerge, Head of Capital Markets and Strategic Initiatives, aiming to enhance the industry’s resilience and wider ecosystem.
