Bitcoin Miners Expand Capacity As Network Hashrate Hits New Record Despite Recent Price Drop

Despite a recent dip in Bitcoin prices, miners are ramping up their operations once again, as the network’s hashrate reached an unprecedented high this week. According to a report by on-chain analysis firm CryptoQuant, the network’s hashrate set a new record of 627 exahash per second on Tuesday, recovering from an 8.5% decline experienced in early July.

Miners are expanding their operations despite squeezed profit margins.

This surge in capacity comes despite a recent dip in Bitcoin prices and a record-low hash price—indicating that miners are feeling optimistic after a phase of selling in recent months. Hashrate, the measure of computational power used by miners to mint new Bitcoin and verify transactions, is critical to the security and operation of the Bitcoin network.

Miners solve complex calculations each second in a competitive process known as mining to secure new blocks.

Historically, miner capitulation events are observed near local bottoms for Bitcoin prices during bull markets.

On Aug. 5, daily miner outflows surged to 19,000 BTC—the highest level since March 18. This suggests that miners, who typically sell Bitcoin to sustain their operations, may have been offloading their holdings due to squeezed profit margins. CryptoQuant highlighted that miners’ average operating profit margins fell to 25%, the lowest since Jan. 22.

Bitcoin prices have been experiencing a bull run despite recent dips.

At the time of writing, Bitcoin was trading at $59,400. The ongoing developments in Bitcoin mining and the broader crypto market will be key topics of discussion at Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders will explore the evolving landscape of digital assets and blockchain technology.

Miners are expanding their operations despite recent price dips.