Hashprice, a metric invented by Luxor that assesses mining profitability, estimates miners’ daily income relative to their estimated contribution to the Bitcoin network’s hashing power. In other words, this is the expected value that miners can expect from a hashing power of 1 TH/s per day.
According to Glassnode, the hashprice is hovering above $62 PH/s, around the highest level since mid-December.
What is driving the increase in hashprice? Well, Bitcoin (BTC) soared to over $100,000, a 56% increase in three months, which gave miners some relief. The network also recently saw a slight increase in mining fees, of around 12 BTC per day, the highest amount in over a month, partly due to the network’s listing activity.
Due to the halving in April 2024, in which mining rewards were halved, the hashrate price dropped by around $115 PH/s.
As a result of the halving, mining companies have struggled in terms of their share price appreciation on average over the past year; while mining revenues for much of 2024 were below the 365 moving simple moving average (SMA). Only since November has it reclaimed this moving average, which is a historically bullish signal.
As the hash rate, the computing power needed to mine a proof-of-work blockchain, has recently reached unprecedented heights, the network difficulty has reached unprecedented heights, which is eating into mining profitability as it becomes harder for minors to receive rewards.
Andre Dragosch, European Head of Research at Bitwise, exclusively told CoinDesk that miners are in a healthier position than last year.
“We have recently seen a decline in the network hash rate since the all-time highs in early January. During this time, the price of bitcoin increased and the overall number of transactions resumed. This led to a recovery in the hash price , which should technically incentivize miners to continue increasing their hash rate.”
Dragosch says: “Overall, Bitcoin miners appear to be well capitalized judging by the continued increase in Bitcoin miner holdings since the start of the year, implying that miners are selling for less than they do not extract it daily.
