Bitcoin Mining Revenue Declines Despite Hash Rate Reaching New Records

The Bitcoin network hash rate reached more than 414 exahashes per second (EH/s) on August 18, (photo: coindesk)

JAKARTA - Bitcoin mining revenue or “hash price” — a measure of revenue in dollars per TH/s per day — has fallen to levels not seen since the FTX crash in November 2022, while hash rates hit new highs.

In the past week, the Bitcoin network's hash rate reached over 414 exahashes per second (EH/s) on August 18, setting a new peak for this metric.

This peak saw the network's hash rate increase by 54% from the start of 2023 and 80% in the last 12 months, according to Blockchain.com.

However, although the network appears to be strong in terms of security, things are not so good for Bitcoin miners as their revenue drops sharply, reaching levels where the Bitcoin price plunged to market cycle lows of around USD 16,500 (IDR 251.5 million) in November 2022.

According to HashPriceIndex, revenue is only about $0.060 per terahash per second per day, about half what it was in early May when the huge interest in space blocks due to the Bitcoin Ordinals inscription phenomenon created high demand.

Market analyst Dylan LeClair commented on declining revenues and peak hash rates, stating that new, more efficient rigs will continue to be produced, "but it is almost time for prices to exceed," meaning prices will need to increase to keep mining profitable at such high hash rates. Now.

On Aug. 24, Bloomberg reported that 12 publicly traded mining companies raised around $440 million (IDR 6.7 trillion) through share sales in Q2.

Mark Jeftovic, who runs the Bitcoin Capitalist newspaper, says, "Some mining companies are diluting shareholders at excessive rates," adding that "if they dilute you faster than Bitcoin's price is rising, then you're going in the right direction." wrong on the treadmill."