Bitcoin Mining Thrives in 2024 Despite Halving: Industry Report Highlights Milestones
Bitcoin mining demonstrated resilient growth in 2024, defying challenges posed by the April halving event. According to a report by H.C. Wainwright analysts Mike Colonnese and Dylan Scales, the industry achieved remarkable milestones, driven by surging hash rates and increased mining capacity.
Bitcoin’s Stellar Performance in 2024
Bitcoin (BTC) closed 2024 with a 121% year-over-year surge, reaching $93,390 and outperforming all other asset classes. This growth was fueled by several factors, including:
The launch of U.S. spot Bitcoin ETFs.
Accelerating institutional adoption.
The re-election of pro-Bitcoin President Donald Trump.
These developments bolstered market confidence, cementing Bitcoin’s dominance in the financial landscape.
Hash Rate and Mining Capacity Skyrocket
The Bitcoin network hash rate soared to 796 EH/s by the end of 2024, a 59% increase from 2023. This surge was driven by public miners, who more than doubled their operational capacity to 235.8 EH/s, accounting for 30% of the total network hash rate, up from 22% the previous year.
Despite the growth in capacity, the April halving event halved block rewards, resulting in a 32% drop in BTC production among public miners. Public miners collectively produced 48,333 BTC in 2024, compared to 71,447 BTC in 2023. However, their BTC reserves rose by 128%, reaching 89,599 BTC, underscoring their strategy to accumulate and hold Bitcoin for long-term gains.
Monthly and Weekly Mining Insights
In December 2024, public miners increased their operational hash rate by 8.6%, producing 3,929 BTC, marking a 6.6% increase from November. However, transaction fees, a smaller portion of miner revenue, fell 8.5% month-over-month, accounting for just 2.7% of total block rewards.
Weekly trends ending January 12, 2025, revealed short-term challenges:
- Bitcoin fell 4.1% to $94,759 after the U.S. Department of Justice approved the sale of seized Silk Road BTC.
- Mining stocks dropped 7.7%.
- The network hash rate dipped 4.4% to 777 EH/s.
Resilience Amid Challenges
Despite reduced block rewards and market pressures, Bitcoin miners showcased remarkable resilience. The report highlights increasing network difficulty and competitive pressures, positioning the industry for another dynamic year in 2025. The growing hash rate, institutional interest, and strategic BTC accumulation suggest a robust outlook for the mining sector.
Bitcoin mining’s strong performance in 2024 demonstrates its ability to adapt and thrive amid evolving market conditions. With the foundations set for continued growth, 2025 could be another transformative year for the world’s most valuable cryptocurrency.
