• The Bitcoin network hash rate is currently at an all-time high of 350 EH/s, up 36.7% YTD.
• Machines have been coming online at a more profitable price point due to unused ASICs from 2022 being used by public miners such as Marathon Digital Holdings, Riot Platforms and Cipher Mining Technologies.
• Public miners make up between 20% to 25% of total network hash rate on any given day.
Hash Rate On The Move
The Bitcoin network hash rate is on the move this year, now at an all-time high of 350 EH/s and up 36.7% YTD. This surge in hash rate is a result of longer-term investment and expansion decisions made by public miners that are now materializing after a time lag, with some machines being kept on the sidelines while bitcoin prices were lower and less profitable to mine.
Public Miner Expansion
Companies like Marathon Digital Holdings, Riot Platforms and Cipher Mining Technologies have been responsible for bringing more machines online at a more profitable price point due to unused ASICs from 2022 that have found their way onto the network as public miners continue to expand operations. Additionally, there may be a high share of miner rig imports into the U.S. in January contributing to this growth in hash rate as shipments have since slowed down which could indicate an upcoming period of cooling off after this recent surge in activity.
Public Miners Represent Significant Share
When using the reported numbers for public miners’ hash rate at the end of February (292 EH/s) compared with today (350 EH/s), we estimate that public miners make up somewhere between 20% to 25% of total network hash rate on a given day – though it’s likely an underestimation considering there are some smaller public miners not tracked or reported data released periodically.
Hash Rate Growth Outpacing Bitcoin Holdings
Average hash rate has been steadily rising over the last few months while bitcoin holdings continue to decline – indicating long-term investment and expansion decisions by public miners contributing significantly towards progress in this industry as well as trust in bitcoin itself as an asset class worth investing into for extended periods of time.
All Time High Hash Rate
In aggregate, hash rate is hitting all-time highs nearly daily which serves as confirmation that investment decisions taken some time ago are paying off – setting the stage for potentially further gains throughout 2021 if trends continue accordingly..
