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The Coin Rise 2025-01-10 22:05:43

U.S. Bitcoin Miners Account for Over 25% of the Global Network

A recent report from Jefferies shows that the Bitcoin (BTC) miners in the United States made up 25.3% of the global Bitcoin network as of December 2024. This indicates that U.S. mining operations are becoming more important. The report also mentioned that mining profits increased in December. Bitcoin Mining Profits Increased in December This rise was mainly due to a 15% jump in Bitcoin prices, which grew faster than the network’s hashrate, which went up 6.5% during the same time. This rise in Bitcoin price helps miners, making their operations more profitable. However, the difficulty of mining is also rising, as shown by the growing network hashrate. Miners who work efficiently and have access to cheap energy will benefit the most from the higher Bitcoin prices. Meanwhile, Jefferies has lowered its price target for Marathon Digital Holdings (MARA), a leading U.S. Bitcoin miner, from $24 to $20. The bank keeps a “hold” rating on MARA shares, advising caution because of increasing network difficulty and the unpredictable nature of cryptocurrency prices. Shifting Focus: Bitcoin Miners Diversify to Stay Ahead The competition for resources has grown more intense, with Bitcoin miners now competing with AI developers to access power grids. AI technology needs a lot of computational power. As such, many companies are leasing their data centers to AI firms to cut costs. Companies like Hut 8 and Hive Digitals are exploring this option to ease their financial pressures. Meanwhile, others like Marathon are expanding internationally, moving to countries like Kenya and Paraguay. This is because these regions have surplus, affordable, and sustainable energy. Additionally, many companies are turning to renewable energy sources like solar, wind, and hydroelectric power to reduce high expenses. These sources offer stable pricing and lower reliance on the fluctuating power grid, helping to offset high mining costs. Bitcoin Records Largest Drop in Mining Difficulty As reported in May, Bitcoin mining difficulty fell by 5.7%, marking the highest negative adjustment since December 2022, when it fell by 7%. Notably, this negative difficulty adjustment is correlated with a 10% decline in Bitcoin’s hash rate since the previous adjustment on April 24. This is evidenced by a drop from a seven-day moving average of 639.58 EH/s to 578.74 EH/s. However, the average block times increased to 10 minutes and 36 seconds before the adjustment. The dip in hash rate resulted in Bitcoin’s hash price plunging to an all-time low of $50 per PH/s per day ($0.05 per TH/s per day) on April 29. Simultaneously, the BTC’s price retraced below the $63,000 level. The post U.S. Bitcoin Miners Account for Over 25% of the Global Network appeared first on TheCoinrise.com .

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