3 September 2024
The Bitcoin network hash rate reached a new all-time high on September 3rd, surpassing 740 exahashes per second (EH/s). This comes even as Bitcoin prices trade below $60,000.
JUST IN: #Bitcoin‘s hash rate hit a new ALL TIME HIGH 🚀 pic.twitter.com/BiLY3pRRIV
— Bitcoin Magazine (@BitcoinMagazine) September 3, 2024
A higher hash rate reflects more computational resources spent processing transactions and mining new Bitcoin. This is despite Bitcoin sliding over 10% this week, which highlights the disconnect between network fundamentals and short-term pricing.
Leading mining companies such as Whatsminer and MicroBT are launching advanced machines to take advantage of the surge in hash rate. Whatsminer has introduced four new mining rigs and a forthcoming solar-powered mining container system. Meanwhile, MicroBT has rolled out its M6XS+ miners, capable of processing between 190 and 450 terahash.
Riot Platforms also purchased Block Mining for $92.5 million to enhance its hash rate and broaden its market presence. Additionally, miners are looking into AI integration and potential acquisition opportunities to address persistent identity challenges in the industry.
Bitcoin’s rising hash rate indicates strong confidence in its long-term sustainability. With significant advancements in mining technology and supportive political conditions enhancing profits, miners are rapidly expanding their infrastructure to handle transactions and secure the Bitcoin network.
While the hash rate doesn’t directly influence Bitcoin’s price, it reinforces the underlying network security. Hashrate milestones also tend to precede bullish market moves and Bitcoin’s halving events.