Bitcoin Hashrate Growth Slows Amid Tough Market Conditions for Smaller Miners

Bitcoin Hashrate Growth Slows Amid Tough Market Conditions for Smaller Miners

Bitcoin Hashrate Growth Slows Amid Market Shifts, Competition Intensifies

The rapid expansion of Bitcoin’s hashrate has decelerated, with January marking the first decline in network difficulty since September, according to the latest report from TheMinerMag. While publicly listed mining firms have continued to grow their computing power, their expansion has not been enough to offset the exit of smaller mining operators.

Mining Revenue Holds Steady, But Smaller Players Struggle

Despite the slowdown, Bitcoin mining revenue remained stable at $1.4 billion in January 2025. Publicly traded mining firms, holding a combined 99,000 BTC valued at approximately $9.7 billion, accounted for about 30% of the total network hashrate.

The industry remains highly competitive, with leading firm Marathon Digital (MARA) securing the top position with a realized hashrate of 41.65 EH/s, followed by CleanSpark (34.77 EH/s) and Riot Platforms (31.27 EH/s), which has been aggressively expanding its mining operations.

The gap between mid-sized miners (10 EH/s range) and industry giants (30 EH/s range) continues to widen, making it increasingly difficult for smaller operations—including Core Scientific, Cipher Mining, and Bitfarms—to remain competitive.

Bitcoin Halving and Market Consolidation

The slowdown comes as Bitcoin’s upcoming halving event has already impacted the sector. The halving, which reduces mining rewards by 50%, has tightened profit margins, giving larger firms a clear advantage due to economies of scale. Many smaller miners have begun exploring alternative revenue sources, such as hosting AI and high-performance computing (HPC) machines, to offset declining profits.

Declining Hardware Imports Signal Further Slowdown

The report also notes a decrease in Bitcoin mining hardware imports to the U.S., a factor contributing to the stabilization of hashrate growth. However, some firms—such as Blockchain Power Corp and AcroHash—have continued to import cooling infrastructure from Bitmain, signaling that expansion efforts are still underway for select players.

Looking Ahead: More Mining Exits Expected

With profitability declining, TheMinerMag predicts another drop in network difficulty in February, as more small-scale mining operators exit the market. As the industry consolidates, the competition among top-tier mining firms is expected to intensify further, shaping the future landscape of Bitcoin mining.