The bitcoin mining industry is currently facing the greatest hash-power migration in history. Due to the latest crackdown by China, some of the leading BTC mining companies are planning to shift their operations to other locations. The on-chain analysis platform Glassnode recently published its weekly on-chain report and mentioned that nearly 50% of Bitcoin miners are currently offline. However, operational bitcoin mining companies have seen a surge in revenues during the last few days.
The daily aggregate revenue is now around $25-$30 million.
Hash Rate touched its peak in April 2021 when Bitcoin reached the price level of $60,000. Miners saw an income of approximately $60 million per day during April. “The daily aggregate revenue is now around $25 to $30 million per day but is shared amongst a smaller pool of miners. Same daily BTC issuance, fewer competitors to share the spoils. This implies that following the latest difficulty adjustment, operational BTC miners are incurring the same OPEX expense but are seeing profitability rise almost 2x, approaching similar profitability levels to back in April,” Glassnode mentioned in its report.
Chinese crackdown on crypto affects the hash rate.
Chinese Bitcoin miners witnessed increased selling pressure in June 2021 due to a sharp increase in logistic expenses incurred by bitcoin mining companies in relocation. But according to the latest data, migration is not having a negative impact on the operational BTC miners. Glassnode further highlighted a significant volatility jump in different Bitcoin mining metrics during the last few days amid China’s bitcoin mining crackdown. “When a significant proportion of hash-power comes offline, blocks will be mined at a slower pace until the difficulty adjusts downwards,” Glassnode noted.