Bitcoin Hashrate Hits Record High Following Network Halving

Bitcoin’s 7-day average hashrate reached a new all-time high of 659 exahashes per second (EH/s) on May 26 [1]. This milestone, representing the total computing power dedicated to mining and securing the blockchain, marks a 13.6% increase from the post-halving low of 580 EH/s recorded just 34 days earlier [1].

Key takeaways

• The network reached its new hashrate record just 34 days after the April 22 halving, a faster recovery than the 56-day and 37-day periods seen after the 2020 and 2016 events, respectively [1].
• Mining resilience is supported by a combination of a market rally and increased transaction fees, which have helped sustain earning potential [1].
• The deployment of next-generation, energy-efficient hardware from manufacturers like Bitmain and MicroBT is a primary driver of the current hashrate growth [1].
• Public mining companies have scheduled the delivery of 76.6 EH/s in new equipment throughout 2024, accounting for a significant portion of the network's expansion [1].

The role of hardware and market conditions

The rapid rebound in network power is largely attributed to the ongoing integration of advanced mining hardware [1]. Leading manufacturers Bitmain and MicroBT released their most powerful and energy-efficient models in late 2023, allowing miners to generate more computing power per unit of electricity [1]. Because public miners—who represent roughly 20% of the total network—have placed substantial orders for these machines, analysts expect continued hashrate growth as these units are deployed throughout the remainder of the year [1].

While the halving event reduced the block reward from 6.25 BTC to 3.125 BTC, mining margins have remained more stable than some industry participants initially anticipated [1, 2]. This stability is partially due to an increase in transaction fees and a general rally in the price of bitcoin, which have helped offset the reduced block rewards [1].

Why it matters

The rise in hashrate creates a self-reinforcing cycle for the Bitcoin network. As more efficient machines come online, the total network hashrate increases, which in turn raises the difficulty of mining new blocks [1]. This heightened difficulty reduces the amount of bitcoin earned for the same amount of effort, compressing profit margins and forcing miners to continuously upgrade their equipment to remain competitive [1]. Consequently, miners who are unable or unwilling to transition to newer, more efficient ASIC fleets face the risk of being forced to unplug from the network entirely as the year progresses [1].