Bitcoin Hash Rate Soars as Miners Power Up Rigs Amid BTC Price Surge

  • Sergey Maga
  • 12:00 Mar 28, 2023
Bitcoin Hash Rate Soars as Miners Power Up Rigs Amid BTC Price Surge

The Bitcoin network has experienced a significant surge in hash rate, with analysts speculating that miners are coming back online to capitalize on the recent BTC price hike. On March 23, the Bitcoin hash rate reached an all-time high of 398 exahash. Although the hash rate has since dropped to 344.63 as of March 27, it is still notably higher than the 178.77 recorded one year ago.

Sam Wouters, a research analyst at Bitcoin financial service provider River Financial, suggests that the increased hash rate is due to unused mining inventory coming back online, new facilities becoming operational, and entrepreneurs discovering affordable sources for mining. Wouters also mentioned that the introduction of Hydro models, which offer 250+ TH/s per machine, has contributed to the impressive hash rate growth.

Investment banking company Stifel shared a similar view in a March 20 analysis, connecting the recent spike to miners reactivating their hardware. The firm stated, “We anticipate overall network hash rate will continue to climb higher as a result of attractively priced hardware being bought up by well-capitalized miners.”

Nazar Khan from Bitcoin mining company TeraWulf revealed that the firm is currently maximizing the hash rate of all its rigs and has recently brought more online at its new Nautilus Cryptomine facility. Khan explained that TeraWulf’s ability to expand at low-cost energy sites has allowed the company to continue mining Bitcoin at lower price levels, thanks to its efficient mining fleets.

Despite the reasons behind the hash rate spike, Khan anticipates the network hash rate will keep increasing throughout the first half of the year, regardless of BTC price fluctuations, due to the lag between investment decisions and capacity coming online.

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