Bitcoin's network hashrate reached a record high on Jan 3, briefly hitting 1,000 exahashes per second (EH/s), data from CoinWarz showed. This is up from the 510 EH/s recorded in January 2024. At press time, the hashrate has settled around 780 EH/s.
The hashrate, a measure of the computational power dedicated to the Bitcoin network by miners, serves as a key indicator of the blockchain's health and security. As more miners join the network, they collectively increase the hashrate, making it more difficult for bad actors to manipulate the blockchain.
Bitcoin miners have continued to expand their operations despite the April halving, which saw the mining reward decrease from 6.25 BTC to 3.125 BTC per block. Several mining companies, such as Riot Platforms and CleanSpark, increased their production capacity to maintain profitability.
A Dec 10 report by JPMorgan noted that some miners acquired turnkey facilities to quickly boost their hashrate and secure reliable power supplies. Moreover, many mining companies focused on adding Bitcoin to their balance sheets, contributing to their long-term strategies.
Major miners, including Marathon, Riot Platforms, and CleanSpark, hold Bitcoin treasuries valued at around $4.4 billion, $1.7 billion, and $910 million, respectively, according to BitcoinTreasuries.net.
The increasing Bitcoin hashrate also aligns with the rising institutional interest in the cryptocurrency market. As of November, Bitcoin exchange-traded funds (ETFs) had surpassed $100 billion in net assets, according to data from Bloomberg Intelligence.
Sygnum, an asset manager, highlighted the importance of a secure Bitcoin network as more institutional capital flows into cryptocurrency. Improved regulatory clarity in the United States has further encouraged large investors, such as pension funds and sovereign wealth funds, to include Bitcoin in their portfolios.
Bitcoin mining companies have seen adjusted valuations as they expand their operations and hold valuable assets. According to JPMorgan, the miners' power assets and Bitcoin treasuries contributed significantly to their value.
For instance, MicroStrategy traded at a 2.4x multiple of its Bitcoin holdings' value as of December 10, showcasing the role of BTC assets in shaping market valuations.
