The Bitcoin mining industry is currently facing the greatest hash-power migration in history. Due to the latest crackdown by China, some of the leading BTC mining companies are planning to shift their operations to other locations.
Glassnode, a leading on-chain analysis platform, recently published its weekly on-chain report and mentioned that nearly 50% of Bitcoin miners are currently offline. However, operational BTC mining companies have seen a surge in revenues during the last few days.
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Hash Rate touched its peak in April 2021 when Bitcoin reached the price level of $60,000. Miners saw an income of approximately $60 million per day during April.
“The daily aggregate revenue now around $25 million to $30 million per day but is shared amongst a smaller pool of miners. Same daily BTC issuance, fewer competitors to share the spoils. This implies that following the latest difficulty adjustment, operational miners are incurring the same OPEX expense, but are seeing profitability rise almost 2x, approaching similar profitability levels to back in April,” Glassnode mentioned.
Chinese Bitcoin miners increased selling pressure in June 2021 due to a sharp increase in logistic expenses incurred by the mining companies in relocation. But the latest data shows that the migration is not having a negative impact on the operational BTC miners.
Bitcoin Mining Metrics
Glassnode highlighted a significant volatility jump in different Bitcoin mining metrics during the last few days as a result of China’s mining crackdown. “When a significant proportion of hash-power comes offline, blocks will be mined at a slower pace until the difficulty adjusts downwards. This week, the average block interval on a 24-hr average basis spiked to a short-term high of 1,958s (32.6mins), over 226% longer than the 600s target block-time. This event was only temporary on 28-June, with average block-times since recovering to an average between 800s to 900s,” Glassnode added.
Yesterday, IBC Group announced that it has decided to close its Bitcoin and Ethereum mining operations in China.
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