Bitcoin miners are taking steps to ensure operations continue to be efficient as the price of Bitcoin (BTC) surges.
Nick Hansen, CEO and Co-Founder of Luxor Technology, told Cryptonews that although Bitcoin price action is relatively positive at the moment, this hasn’t necessarily reflected in the mining sector.
When writing, the Bitcoin Hashprice Index shows the hash price to be around $56.
Bitcoin’s hash price quantifies how much a miner can expect to earn from a specific quantity of computational power. Unfortunately, Bitcoin’s hash price – which measures the revenue miners earn per terahash per second – remains conspicuously low.
This is because mining economics are influenced by multiple factors beyond Bitcoin price. Hansen pointed out that a more relevant metric to focus on in this case is hash price.
“Over the past 3 months, hash price has ranged between $40-$50 on a per Petahash (PH) per day basis,” he said. “Compare this to one year ago – before the most recent 2024 halving price was around $80, twice as high.”
Hansen elaborated that the hash price takes Bitcoin’s price into account but also includes mining difficulty and the number of transaction fees miners collect.
“This is because heightened profitability typically incentivizes additional hash rate to come online,” LeBerge said. “Either new rigs or older less efficient rigs that were previously unprofitable can now turn back on. As the industry continues toward commoditization, efficiency will become increasingly important during this next cycle.”
Jeff LeBerge, Head of Capital Markets and Strategic Initiatives at Bitdeer Technologies Group (NASDAQ: BTDR), told Cryptonews that new highs for Bitcoin are definitely a reprieve.