Hut8, one of the largest cryptocurrency mining companies in the United States, reported a significant drop in its own production in April, according to a May 6 company announcement.
The company reported that BTC mined in April decreased by 36% compared to March. However, this is primarily due to him moving more than 25,000 mining machines from locations in Nebraska and Texas that were acquired by Marathon Digital Holdings.
Hut 8 generated 148 BTC in April compared to 231 BTC in March as the deployed hash rate decreased from 5.4 EH/s (Exahash/s) to 4.5 EH/s.
said Asher Genoot, CEO of Hut 8. “With the halving backdrop, our team's operational capabilities will allow us to maximize the rate of deployed hashes by completing fleet transfers from host facilities to owned facilities and bringing new capacity online. is completed.”
Decrease in mining production
The eight Hutts are not the only major Bitcoin mining companies to report a decline in production. Other public mining companies, including BitFarms, Cipher, CleanSpark, Core Scientific, Riot and Terrawolf, also reported a 6% to 12% drop in production in April, according to industry publication The Miner Mag. ing.
Due to the halving event on April 20th, the block reward was halved to 3.125 BTC, which also halved the mining production from 900 BTC to approximately 450 BTC per day.
However, the BTC fee market temporarily negated the impact of the halving at the start of Bitcoin Loon, boosting demand for blockspace. Nevertheless, we expect that BTC production rates will continue to decline and miner sales may increase as the recent meme asset fad loses popularity.
On May 6th, Riot Blockchain reported its April operational update. The company's BTC production in April decreased by 12%, with 375 BTC produced compared to 425 BTC produced in March.
However, Riot expects its total hash rate capacity for self-mining to reach 31 EH/s by the end of 2024, more than double its current capacity.
Sluggish profits
The reduction in production coincided with a decline in profitability or “hash prices.” According to the hash rate index, the current hash price is just $0.05 per terahash per second per day.
It has fallen 72% to $0.182/TH/s/day since its spike around the halving, and is down a whopping 87.5% from its 2021 high of about $0.400/TH/s/day.
