In December, the crypto mining sector experienced significant economic improvements, with mining profitability reaching a seven-month high. The hashprice, a key metric for daily profitability, rose by 5% since November. Daily block reward revenue per exahash per second (EH/s) peaked at $57,300 in early December, a 40% increase from pre-halving levels. The network’s total hashrate also increased by 6% to 773 EH/s.
The ongoing rally in major cryptocurrencies, including Bitcoin and altcoins like the BGB utility token, has contributed to the surge in mining profitability. Wall Street Bitcoin miners from the US saw a 94% increase in their combined hashrate year-to-date, reaching 222 EH/s and controlling 29% of the global network. However, their market capitalization decreased by $1.5 billion in the first two weeks of December.
Bitcoin miners have been actively selling their holdings in December, offloading over 140,000 BTC valued at $13.72 billion. Despite the sell-off, Bitcoin’s price has remained resilient. Mining revenue has reached approximately $50 million per day, the highest since April. However, increased mining difficulty poses challenges for miners, requiring more computing power to extract the same amount of cryptocurrency.
The selling of BTC by Bitcoin miners in December is primarily driven by the need to cover operational expenses such as electricity bills. While some miners are selling to secure profits at Bitcoin’s new all-time highs, others are choosing to issue bonds or other debt instruments to raise funds and build up their BTC reserves. For example, Riot Platform recently purchased 667 BTC at an average price of $101,135, increasing its holdings to 17,429 BTC.
In contrast, El Salvador, the first country to adopt Bitcoin as legal tender, has accumulated just under 6,000 BTC. The behavior of Bitcoin miners in December reflects a calculated approach to maintaining operations and capitalizing on favorable market conditions. Despite challenges posed by increased mining difficulty, miners are adapting to maximize returns on their mined assets.
