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Coin Metrics: New Tech Reshapes Bitcoin Mining Landscape Amid Post-Halving Hangover

Author: Content Editor
The "State of the Network" report by Coin Metrics and analyst Matías Andrade reveals that the 2024 bitcoin halving event had a significant impact on the mining scene. The halving reduced block rewards from 6.25 BTC to 3.125 BTC, leading to a sharp fall in BTC-denominated revenue per terahash per second (TH/s) of mining power. However, a surge in bitcoin's price to over $105,000 partially offset these losses, boosting USD-denominated revenue. Nevertheless, profitability still lags behind pre-halving levels, indicating challenging times for miners.

Publicly traded bitcoin mining companies have outperformed bitcoin's price growth, with stocks of leading firms like Hut8, Bitdeer, and Core Scientific experiencing significant gains since July. This is attributed to operational expertise, strong financials, and advanced mining rigs. Holding onto bitcoin during the bear market also proved beneficial when prices rebounded.

The Coin Metrics report highlights the switch to S19-series ASICs, such as the XP and JPro models, which now dominate the network's hash power. Older models like the Antminer S9 have mostly been retired. Andrade emphasizes the importance of miners keeping their equipment up-to-date to remain competitive. Looking ahead, the report stresses the need for miners to adapt to bitcoin's shrinking supply, optimize operations, and access inexpensive energy sources.

Andrade underscores the importance of innovation and efficiency for long-term survival as competition intensifies. The conclusion of the report depicts a bitcoin mining industry grappling with revenue declines due to the halving while managing hardware upgrades and navigating a volatile market. As bitcoin's price recovers, operational toughness and technological expertise are crucial for securing profits.

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