The Q1-2024 Hashrate Index Report by Luxor Technology analyzes the performance of the Bitcoin mining sector post-Fourth Bitcoin Halving. The report provides insights into metrics such as Bitcoin Hashrate, Hashprice, Hashrate Forwards, and Bitcoin Mining Stocks, showcasing the industry’s adaptability and the challenges ahead in a post-Halving world. Hashprice and network hashrate are closely monitored post-Halving. Hashprice, measuring daily revenue per hash with a full-pay-per-share mining pool, experienced extreme volatility around the event. Despite initial fluctuations, it now hovers around $50/PH/day, highlighting the tough economics miners face. Hashrate, on the other hand, increased over Q1-2024 but has since fallen to 580 EH/s, with limited growth expected due to compressed margins and seasonal power draw curtailment.
Hashrate Forwards traders predict a rise in hashprice, with contango trading indicating bullish sentiment. ASIC markets saw a slowdown pre-Halving, with price drops in various models. Antminer S21 premiums rose, reflecting miners’ shift towards more efficient hardware to offset post-Halving revenue declines. Public Bitcoin miners are engaged in an arms race to boost hashrates and improve efficiency.
2024 poses challenges for Bitcoin miners, who must rely on transaction fees more than ever. Miners need to optimize power efficiency, adopt hedging strategies, and explore cost-cutting measures to weather the tough landscape. Consolidation through mergers and acquisitions is expected in the US and Canada, driven by low ASIC and mining facility prices. The integration of mining with energy systems will deepen, with miners seeking low-cost power sources. The current Halving epoch will accelerate this integration, pushing miners towards electricity production sources for cost savings. Alessandro Cecere & Colin Harper provide these insights, highlighting the industry’s future trajectory.
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