United

Bitcoin

Impact

Summer

The Bitcoin hashrate is anticipated to slow down during the North American summer due to extreme heatwaves. This seasonal reduction could provide some relief to miners, who are already facing reduced profit margins following the recent Bitcoin <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/">halving</a>, which cut mining rewards by 50%. The hashrate hit a record high of 658 EH/s on May 25 but has since decreased by 10% to 589 EH/s as of June 17, according to Luxor's Hashrate Index data, according to <a href="https://www.coindesk.com/business/2024/06/18/bitcoin-hashrate-may-finally-slow-as-miners-face-scorching-summer-heatwaves/">Coindesk</a>. 
Miners are grappling with the challenge of heat mitigation, as their powerful ASIC machines generate significant heat. The high temperatures of summer require increased energy for cooling or lead to shutdowns to manage energy consumption and avoid overheating. These operational curtailments are common in areas like Texas, where a large portion of U.S. Bitcoin mining is concentrated. The University of Cambridge estimates that 37% of all Bitcoin mining occurs in the United States. 
Blockware Intelligence analysts noted that residential energy consumption spikes during summer due to air conditioning, which further pressures miners to curtail operations. This trend has led to lower hashrate and mining difficulty in the past two summers. A lower hashrate reduces competition among miners, potentially benefiting those who continue operations. 
Riot Platforms (RIOT) and other miners with power purchase contracts may earn additional income by curtailing operations and selling energy back to the grid. Colin Harper of Luxor Hashrate Index suggests that if the hashrate continues to decline, miners could see a negative difficulty adjustment, easing the competitive pressure.

Bitcoin Hashrate Expected to Slow as Summer Heatwaves Impact Mining Operations

Ultramining_Eng

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