The Bitcoin (BTC) mining industry went through financial stress throughout the year 2022 due to a bear market impacting its earnings when translated to the US Dollar but on June 13, miners saw a 68.3% increase in mining revenue just under a month’s time, as stated by Cointelegraph.
According to Cointelegraph, over the years, Bitcoin mining dropped due to a range of factors concerning investors’ sentiment which has been driven by tensions arising from market crashes, ecosystem collapses and loss-making investments. However, Bitcoin’s recovery has shown positive signs across different determinants which includes miners’ revenue in dollars, network difficulty, hash rate, among others. Blockchain.com’s data pointed that BTC mining revenue saw an increase of close to 69% in a month’s time, from $13.928 million on July 13 to $23.488 million on August 12, an increase of $9.56 million. Through these inputs, Bitcoin mining got categorised as a viable business despite high operational costs. Additionally, lower mining equipment (GPU) prices have allowed BTC miners to extend their existing infrastructure in their pursuance of of mining the remaining two million BTC.
Furthermore, Cointelegraph’s data mentioned that with mining revenue, Bitcoin’s hash rate grew by 10% over the last month, which added to the network’s defense against double-spending attacks. However, network difficulty went up for the first time since June. On the basis of positive outputs across the Bitcoin network, cryptocurrency mining companies reported increased stock prices over the last month. Cryptocurrency mining companies, which included Hut8 Mining Corp., Marathon Digital Holdings and Core Scientific, emphasised on the part of stock prices increasing with each performing showing a return by 95% than what they gave in June, 2022. However, all the three companies posted widened losses, which was driven by impairment losses on the total value of their total cryptocurrency holdings.
(With insights from Cointelegraph)