Bitcoin Hashrate Exceeds One Zetahash for the First Time
The intraday value at the peak was ~1025 EH/s, follows from Glassnode data.
The smoothed seven-day moving average hit a high of 897.6 EH/s on April 6.
On April 5, mining complexity updated ATH at 121.51 T. The metric added 6.81% at once.
The current prediction is for the next recalculation in about 11 days to reduce complexity by 0.5%.
On April 7, the first cryptocurrency in the moment collapsed below $75,000. After recovering, digital gold is trading around $80,000 (CoinGecko).
Mining profitability under serious pressure
Analysts have already noticed an alarming trend - against the background of the network hash rate growth to new record values, the bitcoin price is moving in the opposite direction. It is almost 30% away from the all-time high reached in January.
According to the Hashrate Index, the hashprice has fallen to its lowest since the beginning of the year at ~$40 per day per PH/s. That's more than half the levels recorded a year ago before the halving of the April 20.
”For miners to remain profitable and cover operating expenses and capital expenditures, a high bitcoin price, full blocks, and high transaction fees are important,” emphasized CoinDesk Senior Analyst James Van Straten.
The first cryptocurrency is experiencing problems with all three components of its formula. At the end of the first quarter, the share of network fees in the total revenue of miners was only 1.33%.
Against this backdrop, industry participants are expanding diversification into the more lucrative field of high-performance computing (HPC), targeting the AI sector.
Bitfarms has reached a preliminary agreement with Macquarie Group and secured a $300 million loan. The funds will be used to finance the development of its Panther Creek HPC project. The firm acquired the existing mining facility through a merger with Stronghold.
Galaxy Digital signed a 15-year agreement with CoreWeave. As part of it, the company will provide the AI firm with 200 MW of infrastructure at the Helios data center in Texas acquired from Argo.
Galaxy's revenue under the contract is expected to reach $4.5 billion.
”Trump's 'exempt' duties deal a blow to bitcoin mining
Bitcoin miners in the United States will be directly affected by the import tariffs announced on April 2 by President Donald Trump, industry experts believe.
The majority of cryptocurrency mining devices are now imported into the country from Malaysia (new duty rate of 24%), Thailand (36%) and Indonesia (32%), noted Blockware Solutions founder and CEO Mason Jappa.
”Rigs already landed in the USA will become more valuable,” he stated.
BitMars general manager Summer Meng added China (54%) to the above list. All factories of Bitmain, the largest manufacturer of bitcoin mining equipment, will be affected, she emphasized.
According to the assessment of The Mining Pod specialists, the PRC-based company occupies about 80% of the ASIC miner market. Another 7% is accounted for by the Chinese competitor MicroBT, whose enterprises are located in the same jurisdictions.
Both companies have previously announced opening production lines in the US. However, their scale remains unknown, and chips for the plants are still imported from overseas.
Blockware Solutions analyst Mitchell Askew called the impact of the tariffs ”huge.” According to him, it will lead to a reduction in imports, which will increase domestic demand.
”If you combine that with BTC growth, we could see ASIC miner prices jump 5-10 times as much as they did in 2021,” Askew said.
Some equipment vendors are rushing to ”jump on the last wagon,” writes Bloomberg. The head of equipment at service company Luxor Technology, Lauren Lin, has less than two days to ship 5,600 rigs from Thailand to the United States.
”Today we're just trying to get out. Ideally, we can charter and get the devices out. We will try to be as creative as possible to get them out,” she commented.
The cost of equipment makes up a significant part of miners' expenses, and a more than 20% increase in procurement costs will significantly affect the profitability of the business, she added.
Synteq Digital CEO Taras Kulik believes that the announced tariffs will ”suppress further development of the sector”.
”If the new import duties affect key components, we will face higher capital costs for North American mining operators. This will add pressure to an already cooling market,” said Wolfie Zhao, head of research at TheMinerMag.
Bitcoin Hashrate Exceeds One Zetahash for the First Time
The intraday value at the peak was ~1025 EH/s, follows from Glassnode data.
The smoothed seven-day moving average hit a high of 897.6 EH/s on April 6.
On April 5, mining complexity updated ATH at 121.51 T. The metric added 6.81% at once.
The current prediction is for the next recalculation in about 11 days to reduce complexity by 0.5%.
On April 7, the first cryptocurrency in the moment collapsed below $75,000. After recovering, digital gold is trading around $80,000 (CoinGecko).
Mining profitability under serious pressure
Analysts have already noticed an alarming trend - against the background of the network hash rate growth to new record values, the bitcoin price is moving in the opposite direction. It is almost 30% away from the all-time high reached in January.
According to the Hashrate Index, the hashprice has fallen to its lowest since the beginning of the year at ~$40 per day per PH/s. That's more than half the levels recorded a year ago before the halving of the April 20.
”For miners to remain profitable and cover operating expenses and capital expenditures, a high bitcoin price, full blocks, and high transaction fees are important,” emphasized CoinDesk Senior Analyst James Van Straten.
The first cryptocurrency is experiencing problems with all three components of its formula. At the end of the first quarter, the share of network fees in the total revenue of miners was only 1.33%.
Against this backdrop, industry participants are expanding diversification into the more lucrative field of high-performance computing (HPC), targeting the AI sector.
Bitfarms has reached a preliminary agreement with Macquarie Group and secured a $300 million loan. The funds will be used to finance the development of its Panther Creek HPC project. The firm acquired the existing mining facility through a merger with Stronghold.
Galaxy Digital signed a 15-year agreement with CoreWeave. As part of it, the company will provide the AI firm with 200 MW of infrastructure at the Helios data center in Texas acquired from Argo.
Galaxy's revenue under the contract is expected to reach $4.5 billion.
”Trump's 'exempt' duties deal a blow to bitcoin mining
Bitcoin miners in the United States will be directly affected by the import tariffs announced on April 2 by President Donald Trump, industry experts believe.
The majority of cryptocurrency mining devices are now imported into the country from Malaysia (new duty rate of 24%), Thailand (36%) and Indonesia (32%), noted Blockware Solutions founder and CEO Mason Jappa.
”Rigs already landed in the USA will become more valuable,” he stated.
BitMars general manager Summer Meng added China (54%) to the above list. All factories of Bitmain, the largest manufacturer of bitcoin mining equipment, will be affected, she emphasized.
According to the assessment of The Mining Pod specialists, the PRC-based company occupies about 80% of the ASIC miner market. Another 7% is accounted for by the Chinese competitor MicroBT, whose enterprises are located in the same jurisdictions.
Both companies have previously announced opening production lines in the US. However, their scale remains unknown, and chips for the plants are still imported from overseas.
Blockware Solutions analyst Mitchell Askew called the impact of the tariffs ”huge.” According to him, it will lead to a reduction in imports, which will increase domestic demand.
”If you combine that with BTC growth, we could see ASIC miner prices jump 5-10 times as much as they did in 2021,” Askew said.
Some equipment vendors are rushing to ”jump on the last wagon,” writes Bloomberg. The head of equipment at service company Luxor Technology, Lauren Lin, has less than two days to ship 5,600 rigs from Thailand to the United States.
”Today we're just trying to get out. Ideally, we can charter and get the devices out. We will try to be as creative as possible to get them out,” she commented.
The cost of equipment makes up a significant part of miners' expenses, and a more than 20% increase in procurement costs will significantly affect the profitability of the business, she added.
Synteq Digital CEO Taras Kulik believes that the announced tariffs will ”suppress further development of the sector”.
”If the new import duties affect key components, we will face higher capital costs for North American mining operators. This will add pressure to an already cooling market,” said Wolfie Zhao, head of research at TheMinerMag.