Increasing Bitcoin Hashrate Indicates Confidence in BTC Value
2025-01-11
Category: None

Bitcoin miners have reported a rising hashrate, a development that reflects growing confidence in BTC’s future value despite ongoing market uncertainties.
The term “hashrate” refers to the computational power used to secure the Bitcoin network by solving complex mathematical problems. 
The hashrate of is nearing ATH, at 57EH/s! 👍🚀 — A v B (@ArminVanBitcoin) 
Russell Cann, Chief Development Officer of publicly traded Bitcoin mining company Core Scientific, told Cryptonews that a rising hashrate reflects greater confidence in Bitcoin’s long-term value.
“When hashrate grows, the Bitcoin network becomes more secure, reducing risks and enhancing its reliability as a store of value,” Cann explained. 
“This strengthened security can boost investor confidence, prompting greater accumulation by both institutions and individuals who see Bitcoin as a safe and appreciating asset,” she added.
Cann further explained that increasing hashrate plays an important role in profitability for miners. 
“When miners are benefiting from reduced operational costs, such as lower energy prices or more efficient equipment, and BTC prices remain stable or rise, their profit margins improve. This financial stability enables miners to retain their BTC rather than liquidating it to cover costs, further adding to the recent increase in holdings,” Cann said. US Miners Report Increasing Hashrate
US-based mining firm CleanSpark reported a total of 668 BTC mined in December and 7,024 BTC for the entire year of 2024. 
, the company also disclosed a 287.9% year-over-year increase in its hashrate.
— CleanSpark Inc. (@CleanSpark_Inc) 
Taylor Monning, CleanSpark’s CTO, told Cryptonews that the firm’s Bitcoin mining holding balance has grown over 236% – from 3,000 Bitcoin in December 2023 to above 10,000 last month.
“We have rapidly increased our hashrate, which now exceeds 39 exahash per second (EH/s), making us the second largest public mining company by production,” Monning said. “We recently surpassed our 20,000 Bitcoin mined in just four years of mining, so holding almost half of that in our treasury demonstrates that we know how to grow while managing capital.”
Similarly, Bitcoin mining company Riot has also reported steady growth in its Bitcoin production. 
 showed a 155% increase in its deployed hashrate for 2024. 
Operating across multiple mining facilities in Texas and Kentucky, Riot attributed this growth to increased production efforts and heightened network difficulty following Bitcoin’s April 2024 halving event.Bitcoin Mining Hashrate Expected to Increase in 2025
Notably, the United States accounted for over 40% of the Bitcoin network’s global hashrate at the end of 2024.
According to TheMinerMag, US-based Bitcoin miner from 157 EH/s at the start of 2024 to roughly 280 EH/s by December. 
The MinerMag also notes that Foundry is currently the largest mining pool by hashrate, controlling approximately 36.5% of the total Bitcoin network hashrate.
Cann believes that BTC hashrate will continue to increase in the coming year. This will be due to instutional involvement in Bitcoin, along with other factors. 
“Large-scale mining operations continue to expand due to rising institutional interest,” Cann said. “Companies with access to capital are also deploying more mining rigs, which can be due to increased optimism in the industry.”
Advancements in mining technology are also influencing hashrate growth. 
New-generation mining rigs with higher energy efficiency and better computational performance are enabling miners to add more hash power to the network at a lower cost.
Nick Hansen, CEO of Luxor Technology – a Bitcoin mining pool provider – told Cryptonews that the large scale deployment of new generation X21 series, along with MicroBT’s M6X, is driving network hashrate growth.
Riot is buying $162 million of MicroBT WhatsMiner rigs, 7.6 EH/s, super-efficient and immersion-ready.— Pierre Rochard (@BitcoinPierre) 
“Miners are achieving almost 50% more hashrate per MW than the previous generation machines,” he said. 
Monning also pointed out that the rapid interest in government nations to both mine Bitcoin and also build a Bitcoin reserve has been influential.
“This level of interest has never been seen in Bitcoin before, and it is bringing new players to the market, which is increasing hashrate,” he said. 
Yet while rising hashrate indicates confidence in the value of Bitcoin, it also makes the mining process more competitive. 
“This drives miners to seek efficiency and lower operational costs to stay profitable,” Cann said. Greater Transparency in Bitcoin Mining Operations
The transparency behind Bitcoin’s rising hashrate has also become noteworthy.
's hashrate is more transparent than ever. These companies now disclose nearly 35% of global production! 🚀 Dive into the full details in this week’s & subscribe for FREE to get top insights weekly! 👇🔗 — BlocksBridge Consulting (@BlocksBridge_) 
According to TheMinerMag’s archive data, in January 2022, only 16.7% of the total hashrate was attributable to known entities. 
By , approximately 31.6% of global Bitcoin production could be directly linked to 19 publicly traded mining companies that disclose their proprietary mining performance monthly.Source: TheMinerMag
Jeff LaBerge, Bitdeer’s Head of Capital Markets and Strategic Initiatives, told Cryptonews that apart from disclosures as a publicly listed mining company, Bitdeer is also committed to a greater level of transparency this year in the production of its mining rigs.
“This will benefit the wider ecosystem and resilience of our industry,” LaBerge said. 