Bitcoin network surge affects profits, miners diversify

Declining profits have causing miners to explore alternative ways to make money

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The Bitcoin network has recently seen an unprecedented spike in computing power, marking an important milestone for the cryptocurrency. Despite the positive development, falling profits have forced miners to explore alternative avenues.

The spike in the network’s hash rate indicates that an unprecedented number of miners are actively securing the Bitcoin network. However, this rise coincided with a notable drop in the profitability of Bitcoin mining operations. Data from investment bank Jefferies revealed that daily revenue per exahash, a key measure, fell 11.8% in August from the previous month.

As Bitcoin becomes a fixture, the days of lucrative mining seem to be fading. Institutional capital inflows and robust network infrastructure suggest the cryptocurrency is more resilient than ever. Nevertheless, competition for smaller rewards has increased.

To relieve financial pressure, Bitcoin miners are increasingly investing in upgrades to their equipment. Marathon Digital and Riot Platforms, two prominent miners, have suffered significant value losses this year. These challenges have prompted some miners to diversify their operations. Core Scientific, a leading publicly traded miner, has successfully adapted its infrastructure to support artificial intelligence and high-performance computing.

Core Scientific has entered into a lucrative partnership with Nvidia-backed startup CoreWeave to leverage its massive GPU infrastructure for AI and HPC applications. This move positions Core Scientific as a frontrunner in the burgeoning data centre market.

Business AM

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