Bitcoin miners are facing increasing challenges as the network’s difficulty level surged by 2.99%, reaching 89.47 trillion. This increase comes at a time when miners are already grappling with declining revenues. The hashprice—representing estimated daily earnings for 1 petahash per second (PH/s)—fell from $47 to just over $42 per day in less than a week. The difficulty adjustment, which will remain in place until September 10, 2024, adds another layer of pressure to miners who are seeing their profitability erode.
As Bitcoin’s difficulty continues to rise, it becomes harder to mine new blocks, exacerbating the financial strain on mining operations. This latest adjustment is just shy of the all-time high of 90.66 trillion, indicating that competition among miners remains fierce despite the revenue slump. The concentration of mining power in a few large pools—such as Foundry USA and Antpool, which together account for over 54% of the network’s total hashrate—highlights the growing centralization within the industry, further complicating the landscape for smaller players.
With the hashprice below $50 per PH/s, even the largest publicly traded mining companies are feeling the squeeze. Marathon Digital and Riot Platforms are navigating these tough conditions by exploring cost-cutting measures and strategic partnerships, but the ongoing revenue decline poses significant risks to their operations. The upcoming weeks will be critical for the industry, as miners adjust to the higher difficulty and seek ways to sustain profitability in an increasingly competitive environment.
