Bitcoin Hashrate Growth Slows Amid Increased Competition and Market Adjustments

• Bitcoin’s hashrate growth decelerated in January, with network difficulty declining for the first time since September.
• Publicly traded mining firms accounted for 30% of hashrate, holding 99,000 BTC worth about $9.7 billion.
• Mining hardware imports to the U.S. decreased, contributing to the stabilization of hashrate growth amid market consolidation.

Bitcoin’s hashrate growth decelerated in January after months of rapid expansion, according to a report from TheMinerMag. The network’s difficulty experienced its first decline since September, reflecting the challenges faced by smaller mining operations. Despite an increase in hash power from publicly listed companies, their growth was insufficient to offset the exit of less competitive miners.

Hashrate Growth Stalls as Market Dynamics Shift

According to the CoinDesk report , the total revenue generated from Bitcoin (BTC) mining remained steady at $1.4 billion in January. Publicly traded mining firms, holding a combined 99,000 BTC valued at approximately $9.7 billion, accounted for around 30% of the network’s hashrate. While large operators expanded, the broader market saw a slowdown as smaller miners faced profitability pressures.

Marathon Digital held the top position by operating at 41.65 EH/s hashrate. The hashrate numbers from CleanSpark stand at 34.77 EH/s but Riot Platforms achieved 31.27 EH/s through their aggressive market movements. 

The 30 EH/s section of the Bitcoin mining industry has become highly competitive which creates an expanding performance difference between 30 and 10 EH/s mining_capacity operations including Core Scientific along with Cipher Mining and Bitfarms.

Halving Impact and Market Consolidation

Bitcoin’s recent halving event significantly reduced mining rewards, placing additional strain on profit margins. Even with BTC prices near $100,000, many smaller operators have struggled to sustain operations. 

Larger companies, already positioned to withstand market fluctuations, increased their market share as a result. Some miners have started diversifying revenue streams by hosting machines for artificial intelligence and high-performance computing firms.
Mining hardware imports to the United States decreased in January, contributing to the stabilization of hashrate growth. Despite the overall slowdown, companies like Blockchain Power Corp and AcroHash imported significant amounts of cooling infrastructure from Bitmain, underscoring efforts to improve operational efficiency.