Bitcoin mining reaches milestones in 2024, according to the latest industry update from HC Wainwright analysts Mike Colonis and Dylan Scales.

Bitcoin (Bitcoin) increased by 121% year over year, closing the year at $93,390 and exceeding all other asset classes. The main motivations behind the rally included launching Bitcoin ETFs in the USAccelerating institutional adoption and re-election of pro-bitcoin President Donald Trump, according to an analyst note shared with crypto.news.

The Bitcoin network hash rate reached 796 exahashes/s by the end of the year, representing a 59% increase from 2023. This growth was primarily driven by public miners, who doubled their operational capacity to 235.8 exahashes/s. Public miners now account for 30% of the network's total hash rate, up from 22% the previous year.

Despite the capacity growth, the Bitcoin halving event in April reduced block rewards, leading to a 32% drop in Bitcoin production among public miners. Public miners collectively produced 48,333 BTC in 2024, compared to 71,447 BTC in 2023. However, Bitcoin reserves on the balance sheets of public miners rose by 128%, reaching 89,599 BTC by the end of the year.

Improve hash rate and mining capacity

In December alone, public miners increased their operational hash rate by 8.6%, producing 3,929 bitcoins, an increase of 6.6% from November. Transaction fees, which make up a smaller portion of miners' revenue, fell 8.5% month-on-month and represent just 2.7% of total block rewards.

The weekly trends ending January 12, 2025 revealed the challenges. Bitcoin fell 4.1% to $94,759 after the US Department of Justice approved the sale Silk Road BTC Captured. Mining stocks fell 7.7%, and the network hash rate fell 4.4% to 777 exah/s.

The update highlights the resilience of Bitcoin miners amid increasing network difficulty and market pressures, setting the stage for another dynamic year in 2025.