Bitcoin Hashrate Growth Slows as Smaller Miners Struggle Amid Tough Market Conditions
The rapid growth of Bitcoin’s hashrate took a pause in January, signaling a shift in the mining industry, according to the latest report from TheMinerMag.
After months of continuous expansion, Bitcoin’s network difficulty dropped for the first time since September. While major publicly traded mining firms have increased their computing power, their gains have not been enough to offset the decline caused by the exit of smaller mining operations.
Despite these shifts, Bitcoin mining revenue remained steady at $1.4 billion for the month. Publicly traded mining companies accounted for nearly 30% of the network’s total hashrate and collectively hold about 99,000 BTC, worth approximately $9.7 billion.
Big Miners Strengthen Their Grip on the Market
The industry is seeing increasing consolidation as larger mining firms expand their dominance. Marathon Digital (MARA) continues to lead with a realized hashrate of 41.65 EH/s, followed by CleanSpark at 34.77 EH/s, while Riot Platforms is closing in with 31.27 EH/s.
“Competition among the largest miners has never been more intense, while mid-tier firms like Core Scientific, Cipher Mining, and Bitfarms are falling further behind,” the report noted.
The Post-Halving Challenge for Smaller Miners
The recent Bitcoin halving event has significantly impacted profitability, making survival increasingly difficult for smaller mining operations. As block rewards have been cut in half, only miners with access to low-cost energy and large-scale infrastructure can maintain profitability.
In response, many firms are diversifying their business models by offering infrastructure services to AI and high-performance computing (HPC) firms as a way to offset declining mining margins.
Mining Hardware Imports Slow as Industry Stabilizes
Another sign of the changing market is the slowdown in mining hardware imports to the U.S. However, some firms, such as Blockchain Power Corp and AcroHash, have continued investing in cooling technology and mining infrastructure from Bitmain.
TheMinerMag predicts another downward difficulty adjustment in February as the exit of smaller miners continues, further reshaping the competitive landscape of Bitcoin mining
