Bitcoin’s recent surge to a new all-time high of $109,000 has failed to translate into improved fortunes for bitcoin miners. Data from TheMinerMag reveals that public miners sold 115% of their bitcoin production in April, exceeding their output for the first time since late 2022. This overselling highlights the financial pressures faced by miners despite the record-breaking Bitcoin price.
Despite the record high, hashprice—the earnings per unit of computational power—remains subdued at $55 per petahash per second (PH/s), significantly below the $63/PH/s briefly seen when Bitcoin last topped $100,000 in December. Elevated network difficulty and low transaction fees continue to constrain miner revenues.
Despite these challenges, major players are aggressively expanding their operations. CleanSpark (CLSK) has exceeded a hashrate of 40 EH/s. IREN, now the third-largest public miner surpassing Riot Platforms (RIOT), reported a 25% increase in hash power, aiming for 50 EH/s by June. Cango (CANG) plans to add another 18 EH/s by July. Mara Holdings (MARA) maintains the highest installed hashrate at 57.3 EH/s, according to Jefferies. IREN boasts the highest implied uptime at approximately 97%, followed by Hive Digital Technologies (HIVE) at around 96%.
A notable shift is occurring in how miners acquire new hardware. Several public companies have partnered with Bitmain, agreeing to pay for mining rigs using Bitcoin while retaining repurchase rights at a predetermined price. This strategy acts as a hedge against further price increases.
The performance of mining stocks reflects the industry’s volatility. After a challenging first quarter, many saw rebounds exceeding 60% in April. However, most remain down year-to-date; only CleanSpark and MARA Holdings are currently in positive territory for the year. The divergence between Bitcoin’s price and miners’ profitability underscores the complexities and risks within the Bitcoin mining sector. While Bitcoin reaches new heights, the profitability and financial stability of miners remain a key concern.
