Bitcoin mining production dip Major U.S. cryptocurrency mining companies listed on Wall Street reported lower Bitcoin (BTC) production in February compared to January, citing shorter month and network difficulties as key factors.
Moreover, the revenue decline was impacted by a sharp correction in BTC prices last month, with the oldest cryptocurrency losing 18% and dropping below $80,000. According to the latest JP Morgan report, this had a very negative effect on the market capitalization of mining companies.
Bitcoin Miners See Production Dip in February
Cipher Mining Inc. (NASDAQ: CIFR) produced approximately 180 bitcoins in February, down from 219 in January. The company attributed the decrease partly to a brief planned shutdown at its Odessa site for annual high-voltage electrical maintenance.
MARA Holdings, Inc. (NASDAQ: MARA) saw a 6% month-over-month decrease in bitcoin production, mining 706 BTC in February compared to 750 in January. The company cited higher network difficulty and fewer operational days as primary reasons for the decline. Fred Thi el, CEO, MARA, Source: LinkedIn
“In February, our bitcoin production per day increased 4% over January,” said Fed Thiel, MARA’s CEO. “Blocks “on and bitcoin production decreased by 6% month-over-month, primarily due to a higher network difficulty level and three fewer operational days.”
As Finance Magnates reported yesterday, Riot Platforms (NASDAQ: RIOT), the second-largest miner by market capitalization alongside MARA, also experienced a decline in production. In February, its output dropped by 11% to 470 BTC.
Canaan Inc. (NASDAQ: CAN) reported mining 82 bitcoins in February, down from 88 in January, while increasing its month-end operating hashrate from 5.53 EH/s to 5.73 EH/s.
Bitfarms Ltd. (NASDAQ/TSX: BITF) mined 213 bitcoins in February, being the only miner with a modest 6% increase from 201 in January. The company grew its operational hashrate by 20% to 13.4 EH/s on average during the month.SVP of Global Mining Operations Alex Brammer
“During Febr”ary we grew our operational hashrate 6% to 16.1 EH/s and grew our average operational hashrate 20% to 13.4 EH/s, achieving new all-time highs in three out of four countries,” commented “VP of Global Mining Operations Alex Brammer. “This growth”will continue as we deploy miners in the U.S. and Argentina and optimize performance across all our data centers.”
Bitcoin Miners from Wall Street Lost 22% in Market Cap
The production declines come amid broader challenges facing the crypto mining sector. A recent JPMorgan research note highlighted that mining stocks tracked by the bank collectively shed 22% in market capitalization in February as Bitcoin’s price eroded mining economics.
Despite these headwinds, some mining companies are exploring diversification strategies. Canaan, for instance, introduced a new home mining machine called the Avalon Q, targeting individual users with a 90 TH/s device compatible with standard home power supplies. Nangeng Zhang, Chairman and CEO of Canaan
“Notably, “t is the first professional-grade Bitcoin miner supporting 110V home power supply, catering to mining enthusiasts and expanding our reach to individual users,” said Nan”eng Zhang, Chairman and CEO of Canaan. “This late”t addition to our Avalon Home series is now available for pre-order through our website, and delivery is expected to begin in April 2025.”
Despitevariouss challenges miners have been complaining about, 2024 was a record year for many. A notable example is MARA, which reported record financial results for the past year at the end of February, with revenue up 70% to nearly $660 million.
