January 27, 2023

Bitcoin hashrate at its maximum, and miners are increasing their capacities

Until May, China was responsible for half of the world's Bitcoin hashrate. After overclocking the miners, the network power dropped twice, and the decrease in complexity and the increase in profitability from one terahash led to a stir in the ASIC market.
Bitcoin hashrate at its maximum, and miners are increasing their capacities

Image source: ccaf.io

As a result of the redistribution of the market, China completelylost its share, the USA became the # 1 player (34%), while Kazakhstan (13.8%) and Russia (11.9%) took the second and third places, respectively. The bulk of Chinese used equipment has migrated to neighboring countries, and American companies have increased the volume of orders from leading manufacturers through an IPO and the use of debt capital. The arms race has contributed to the full recovery of the computing power of the Bitcoin network over the past seven months.
Bitcoin hashrate at its maximum, and miners are increasing their capacities

Image source: coinwarz.com

Raising outside capital, on the one hand,reduces its own financial risks, and on the other hand, forces companies to continuously increase their computing power to maintain investment attractiveness. So, on December 23, Marathon Digital announced a record order of the latest s19 XP ASICs from Bitmain in order to increase the current hash rate by six times to 23 EH / s by the beginning of 2023 and become the largest publicly traded mining company in the world. On this news, the company's shares rose 12% on the day of trading.

To form a record-breaking orderMarathon Digital took out a $ 100 million loan from Silvergate Bank in October. It has already bought 35,419 ASICs this year, and their total should grow to 199,000 by early 2023.

Despite the correction of the last two months,Bitcoin remains highly attractive to investors, and the increase in computing power will not lead to an oversupply, since mining complexity grows along with it.
Bitcoin hashrate at its maximum, and miners are increasing their capacities

Image Source: Cryptocurrency Exchange StormGain

Analytical agency Glassnode notes that recently, about 100 thousand bitcoins per month are sent to cold wallets and low-activity accounts.
Bitcoin hashrate at its maximum, and miners are increasing their capacities

Image source: twitter.com/glassnode

Bitcoin accumulation usually precedes a new bull cycle. The renewed all-time high will further whet the risk appetite of publicly traded mining companies.

Analytical group StormGain

(platform for trading, exchanging and storing cryptocurrency)