May 19, 2024


Bitcoin’s total hash rate has hit a new all-time high, according to Coin Metrics data, only weeks after the end of a two-month capitulation period for the industry.

Against a more challenging environment, miners are put to the test as to whether they can maintain profitability. Balance sheets are falling under stress as price remains mostly flat while hash rate and mining difficulty keep increasing.

A broad miner capitulation started in the beginning of the summer as the bitcoin price took a deep plunge, erasing all gains made in the previous year. Pressured, most public miners who had previously committed to holding their BTC began selling their daily mined bitcoin to cover operating costs amid diminishing margins. Later, some would also start selling the BTC they had put in cold storage.


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