Coindesk reports that due to the arrival of the North American summer heatwave and the initial weakening of competition among miners after the halving, the Bitcoin network’s computing power has experienced a significant decline in recent weeks. Luxor Technologies, a data analysis platform, pointed out that mining difficulty and competition may also gradually slow down, providing support for the Bitcoin market price.
At the same time, despite some miners upgrading their mining machines on a large scale to resist the continued increase in competitive pressure, temporarily increasing the computing power of the Bitcoin network, data from the Hashrate Index shows that the Bitcoin network’s computing power has been declining since reaching a historic high in May, dropping by about 10% to 589 EH/s.
Blockware Intelligence analysts also noted that Bitcoin computing power usually remains stable or decreases during the North American summer. They added that heat dissipation is the primary challenge currently faced by Bitcoin miners.
Luxor analyst Colin Harpe expressed agreement, expecting the heatwave in the United States to force miners to reduce operations, thus inhibiting the growth of computing power, as seen in 2022 and 2023.
In the face of the decrease in miners’ profitability after the Bitcoin halving and the current bleak situation in the crypto market, major miners are also actively pursuing further mergers and integrations. CleanSpark, for example, announced that it will acquire five Bitcoin mining facilities in Georgia for $25.8 million, with the aim of increasing the company’s total computing power to over 20 EH/s by the end of June.
On the other hand, the hostile takeover case between miners Riot Platforms and Bitfarms continues to escalate. Last week, Trump met with major miners including Riot Platforms and CleanSpark, promising to protect Bitcoin mining and expressing hope that all remaining unmined bitcoins will be mined by American companies.
Bitfarms, CleanSpark, Riot Platforms, mining, Bitcoin, miners, mining companies.