CryptoQuant reports decrease in Bitcoin production for major mining companies in 2024.
Bitcoin mining giants, including RIOT Platforms and Marathon Digital, are experiencing a decline in production in 2024 as the market becomes more competitive and fees decrease. According to a research report by CryptoQuant, the largest crypto mining firms such as RIOT Platforms, Core Scientific, Bitfarms, and Marathon Digital have all seen a decrease in BTC production this year. This decline can be attributed to several factors, including lower transaction fees on the Bitcoin network, increased network hashrate, and operational disruptions. However, CleanSpark stands out as an exception, as it has managed to achieve growth in Bitcoin production despite the industry’s downturn.
To cope with financial pressures, some miners have increased their selling activity ahead of the halving. According to CryptoQuant, daily miner selling to over-the-counter desks reached 1,600 BTC in late March, the highest volume since August 2023. Despite these challenges, competition remains fierce in the sector, with Bitcoin’s network hashrate continuing to rise. This necessitates increased resources to maintain daily production levels. CryptoQuant’s data highlights the “record-high competition for Bitcoin block rewards,” with hashrate surging since the previous halving in 2020.
Although the market is experiencing intense competition, experts believe that the current landscape is different from previous years. They note that current crypto prices are providing relief to many miners and that the market conditions are supportive rather than leading to widespread bankruptcies. According to Hub 8 CEO Asher Genoot, the dynamics in 2024 differ from those seen in 2022, indicating a more favorable environment for miners.
Overall, the Bitcoin mining industry is facing challenges in 2024, with production declines affecting major players. However, CleanSpark’s growth in Bitcoin production demonstrates that there are still opportunities for success in this competitive market.
