This week, the biggest news inside the Bitcoin mining business focused on the drop in production.
The largest Bitcoin mining companies, as reported this week, experienced a significant pullback in production in June. This is an increasingly tough reality for companies.
This situation is caused by the increase in the difficulty of the Bitcoin network, which again hit all-time highs during the most recent automatic adjustment that occurs approximately every two weeks. Consequently, companies dedicated to this industrial sector are the main victims.
Below is a review of the main news related to this industry. During 2023, the large companies listed on the stock market are the main protagonists, and everything indicates that this will remain the case.
Argo Production Drop Was -20%
The first of the Bitcoin mining companies to experience a sharp pullback in June was Argo Blockchain. This week, the London-based firm announced a -20% loss in total production compared to the previous month. As already mentioned, it is a reality that has affected practically all the companies in the area.
Despite this monthly loss, the firm’s prospects are one of strengthening as it continues to expand its computing power. In any case, during June, production would have totaled 139 bitcoins, that is, 4.6 coins per day. This represents a notable drop from the 5.6 bitcoins per day they produced in May.
In May, a total of 173 bitcoins would have been mined in its data centers, as reported by specialized media. Aside from general industry-wide factors, the drop in industry production was linked to internal factors. Particularly, it is about the productive decrease of the Helios farm in Texas.
Hive Blockchain Production Receded Significantly in June
Hive Blockchain is another of the Bitcoin mining companies that experienced a notable production setback during the month of June. Compared to the previous month, the company produced considerably less despite maintaining computing power above 3.3 EH/s.
In total, during that period, the company generated 259 bitcoins at its facilities. Thus, the firm’s total balance rose to 1,957 digital currencies. The company’s production comes from both ASIC and GPU equipment. Likewise, the combination yielded a daily average of 8.6 BTC.
According to the company’s own breakdown, production was above the 2023 average, but notably below the annual record reached in May, when the Hive Blockchain produced a total of 304.06 bitcoins, while in March they achieved a production of 280 coins.
Network Difficulty Reached All-Time Highs Again
The difficulty of the network is an automatic adjustment that occurs in the Blockchain, motivated by the total magnitude of connected equipment.
If the number of connected devices increases, so does the difficulty and vice versa. The reason for this is to keep the mining average at 10 minutes for each block processed. The scarcity in the distribution of coins and the extension of the business until the year 2140 are guaranteed.
In any case, this week there was a new difficulty adjustment on the network, which became one of the countless all-time highs of 2023. According to data from BTC.com, the difficulty was placed at 53.91 T, which represents a remarkable growth of +6.45%, as compared to the previous adjustment.
By Audy Castaneda
