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Cryptocurrency News Articles

Bitcoin Mining Sector Goes Through a Silent Storm as Its Mining Difficulty Decreases for the First Time in Four Months

Feb 07, 2025 at 08:05 pm

Bitcoin has just experienced an unexpected hiccup: its mining difficulty has decreased for the first time in four months. A fragile breath in an ecosystem accustomed to perpetual escalation. Yet, behind this seemingly technical figure lies a much more turbulent narrative.

Bitcoin Mining Sector Goes Through a Silent Storm as Its Mining Difficulty Decreases for the First Time in Four Months

Bitcoin mining difficulty just took an unexpected breath: it decreased for the first time in four months. A fragile sigh in an ecosystem used to a perpetual escalation. But behind this seemingly technical figure lies a much more turbulent narrative. Between site closures, rapid modernizations, and survival strategies, the mining sector is going through a silent storm. What if this decline is the symptom of a deeper mutation?

Bitcoin makes the numbers dance

The mining difficulty, this automatic regulator designed to balance competition, reached a dizzying peak of 110 trillion (T) in January, before dropping to 108 T.

A modest drop, but a symbolic one. Why? Because it occurs in a context where the average hashing rate of the network still brushes against 832 EH/s, a nearly record level. As if the machine, breathless, had suddenly slowed its frantic pace.

Amidst the shipwrecks, Riot Platforms stands out. Its production climbed to 527 bitcoins in January, while its energy credits exploded (+250 %). Its secret? A formidable energy management and Texan facilities boosted by innovation.

Jason Les, its CEO, speaks of a “symbiosis between hardware and energy.” An almost poetic speech for a sector in crisis. Meanwhile, Marathon Digital stumbles: -13 % production, lost blocks, and a laborious transition to S21 Pro miners. The race for efficiency comes at a cash cost.

Hut 8 and Bitfarms, on the other hand, are playing the metamorphosis card. -27 % production for the former, -4.7 % for the latter. Their response? Modernize or disappear. Infrastructure upgrades, costly but vital, are presented as a “necessary passage” by Asher Genoot (Hut 8). A Darwinian logic sets in: only the best equipped will survive.

The cards are being reshuffled

The bitcoin mining sector as a whole oscillates between resilience and vulnerability. While the market capitalization has grown by 5 %, driven by Cipher Mining (+23 %) and Riot (+16 %), strategies diverge radically. Some are betting on expansion, others on diversification.

Riot has revised its ambitions downward (targeting 38.4 EH/s in 2025 versus 46.7 initially) and is now exploring AI and high-performance computing at its Texan site.

An audacious reconversion to exploit its 600 MW of unused energy. Bitfarms, for its part, is liquidating an unfinished Paraguayan mine (85 million dollars) to finance its US expansion. A geostrategic shift that resembles an admission: the global South is losing ground to the United States.

After a rush for ASICs in 2023, orders for WhatsMiner, Avalon, or Antminer are dwindling. Institutional miners are slowing their investments, anticipating a stabilization of difficulty. Paradox: this pause could save the most fragile by reducing competitive pressure. But at what cost?

The decrease in difficulty is not a truce, but a signal. That of a sector at a crossroads, forced to choose between technological escalation and radical reinvention. Between the giants that thrive on innovation and the outsiders in search of breathers, Bitcoin reveals its paradoxical nature: a gold rush where the pickaxe sometimes turns into a quantum computer. The current crisis is not an end, but the prelude to an era where efficiency rhymes with survival. And in this game, every percent of difficulty counts as much as a bitcoin itself.

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Other articles published on Feb 08, 2025