Bitcoin mining showed strong growth in 2024 despite halving: report

Bitcoin mining hits major milestones in 2024, according to the latest industry update from HC Wainwright analysts Mike Colonnese and Dylan Scales.

Bitcoin (BTC) surged 121% year-on-year, closing the year at $93,390 and outperforming all other asset classes. Key factors behind the rally include the launch of US spot Bitcoin ETFs, accelerating institutional adoption, and the re-election of pro-Bitcoin President Donald Trump, according to an analyst note shared with Crypto.news.

The hash rate of the Bitcoin network reached 796 EH/s by the end of the year, indicating a 59% increase compared to 2023. This growth was primarily driven by public miners, who more than doubled their operating capacity to 235.8 EH/s. Public miners now account for 30% of the total network hashrate; This rate was 22% compared to the previous year.

Despite the capacity increase, Bitcoin’s halving event in April reduced block rewards, resulting in a 32% drop in BTC production among publicly traded miners. Public miners collectively produced 48,333 BTC in 2024; this figure was 71,447 BTC in 2023. However, BTC reserves on public miners’ balance sheets increased by 128%, reaching 89,599 BTC at the end of the year.

Improved hash rate and mining capacity

In December alone, public miners increased the operating hash rate by 8.6%, generating 3,929 BTC, up 6.6% from November. Transaction fees, which make up a smaller portion of miner revenue, fell 8.5% from the previous month and accounted for just 2.7% of total block rewards.

Trends for the week ending January 12, 2025 revealed challenges. Bitcoin fell 4.1% to $94,759 following the US Department of Justice’s approval to sell seized Silk Road BTC. Mining stocks fell 7.7% and the network hash rate fell 4.4% to 777 EH/s.

The update highlights the resilience of Bitcoin miners in the face of increasing network challenges and market pressures, setting the stage for another dynamic year in 2025.