While the Bitcoin price hasn’t looked very exciting this month, the network’s total hash rate has been hitting new highs regularly. 🎉
This divergence between security and price suggests that Bitcoin mining firms are continuing to build new hardware despite uncertain market conditions.
According to Glassnode, miner revenues have fallen significantly since the Bitcoin price peaked in March. However, the hash rate has reached 693 EH/s, keeping competition high.
Instead of selling BTC to cover their costs, mining firms appear to be adopting a holding strategy. This, along with rising production costs, could negatively impact miner profitability.
Marathon Digital has announced that it is focusing on holding as much BTC as possible and is buying more BTC using debt. This increases confidence in BTC investment rather than mining.
Some investors are noting that September was seasonally slow for Bitcoin, and are expecting a strong recovery in October-November. 📈