Bitcoin Mining Hashrate Surges Past 100 EH/s as Network Maturity Deepens in Late 2019

The Hardware/Software Landscape

As of December 5, 2019, the Bitcoin mining hardware ecosystem sits at an inflection point that underscores just how far the industry has evolved from its CPU-mining origins. At block height 606,742, the network’s total computing power has reached approximately 101 exahashes per second (EH/s), a figure that would have been unfathomable even two years prior. The dominant force behind this staggering hashrate remains the ASIC mining rig — specifically, units manufactured by Bitmain, MicroBT, and Canaan Creative.

Bitmain’s Antminer S17 and S17 Pro models, which launched in early 2019, have become the workhorses of large-scale mining operations. These units deliver hashrates between 53 and 56 TH/s at power efficiencies around 40 J/TH, representing a meaningful generational leap over the older S9 series that long defined the industry. Meanwhile, MicroBT’s Whatsminer M20S has emerged as a serious competitor, offering comparable performance with marginally better power consumption metrics. Canaan Creative, which went public on NASDAQ in November 2019, rounds out the top three with its AvalonMiner 1146 Pro.

The TokenInsight mining industry report released on December 5, 2019, provides a comprehensive snapshot of this competitive landscape. The report highlights that mining difficulty has been on a consistent upward trajectory throughout Q4 2019, even as Bitcoin’s price has pulled back significantly from its June highs near $13,800. This divergence between price action and network security investment signals a fundamental shift in how mining operators approach capital expenditure — fewer speculators, more long-term infrastructure builders.

Hashrate & Difficulty

Bitcoin’s mining difficulty, which adjusts every 2,016 blocks to maintain the approximate 10-minute block time, tells the story of 2019 in miniature. The year began with difficulty hovering around 5.6 trillion (at the end of the bear market), surged alongside Bitcoin’s price recovery through Q2, and continued climbing even as BTC pulled back to the $7,400–$7,500 range by early December.

The network’s hashrate crossing the 100 EH/s threshold in late November and sustaining through early December represents a psychological and technical milestone. For context, the hashrate at the beginning of 2019 was roughly 40 EH/s — meaning the network more than doubled its computational output in a single calendar year. This growth has been driven by three primary factors: the deployment of next-generation 7nm ASIC chips, the expansion of industrial-scale mining facilities in regions with cheap electricity, and the entry of publicly traded mining companies with access to capital markets.

The December 5 difficulty adjustment reflects these trends, sitting at approximately 12.9 trillion — one of the highest levels in Bitcoin’s history at that point. Notably, the hashrate has remained elevated despite Bitcoin trading near $7,448, which squeezes profit margins for operators with older hardware or higher electricity costs.

Profitability Metrics

At a Bitcoin price of $7,448 and a network hashrate of 101 EH/s, mining economics present a mixed picture. For operators running the latest-generation ASICs (S17 Pro, M20S) with electricity costs below $0.05 per kWh, mining remains comfortably profitable. These operations generate gross margins of 30–50% depending on their specific cost structure and operational efficiency.

However, for miners still running older S9-class hardware, the picture is far more challenging. With power consumption around 95–100 J/TH and lower hashrates, these units operate near the breakeven point at current prices. Many have already been decommissioned or relocated to regions with ultra-cheap hydroelectric power, such as Sichuan Province in China and parts of the Pacific Northwest in the United States.

The breakeven price for an average S17 Pro operator with $0.04/kWh electricity sits somewhere around $5,000–$5,500 per BTC, providing a reasonable cushion above the current market price. But this margin narrows considerably for operators paying $0.06–$0.07/kWh, which is more typical in regions without subsidized industrial electricity rates.

Environmental Impact

The environmental conversation around Bitcoin mining has intensified as the network’s energy consumption has grown. With the hashrate now exceeding 100 EH/s, estimates place Bitcoin’s annualized electricity consumption at approximately 60–70 TWh — comparable to a small country. However, the industry has made meaningful strides toward sustainability, driven primarily by economics rather than altruism.

CoinShares’ December 2019 research report estimates that approximately 73% of Bitcoin mining operations run on renewable energy sources, particularly hydroelectric power. This figure, while debated by some researchers, reflects the genuine economic incentive for miners to locate operations near cheap, abundant, and often renewable energy sources. Sichuan Province’s rainy season, which runs from May through October, provides a natural flood of cheap hydroelectric power that Chinese mining operations have learned to exploit.

Outside of China, regions like Quebec, Iceland, and Norway have attracted mining operations with their combination of cold climates (reducing cooling costs) and abundant renewable energy. These operations generally have smaller carbon footprints per hash than their coal-powered counterparts in other Chinese provinces.

Strategic Outlook

Looking ahead, the Bitcoin mining industry faces a pivotal moment with the upcoming halving event scheduled for May 2020. When the block reward drops from 12.5 BTC to 6.25 BTC, mining revenue will effectively be cut in half overnight — unless Bitcoin’s price doubles to compensate. This event is already shaping investment decisions across the industry.

Sophisticated mining operations have been stockpiling cash and upgrading to the most efficient hardware available in preparation. The logic is straightforward: post-halving, only the most efficient operators will remain profitable at lower Bitcoin prices. This dynamic is likely to accelerate the decommissioning of older mining hardware and potentially trigger a temporary decline in hashrate immediately after the halving, followed by a recovery as difficulty adjusts downward.

The December 5, 2019, market conditions — BTC at $7,448 with hashrate at 101 EH/s — suggest an industry that is investing for the long term despite near-term price uncertainty. Mining operations are behaving less like speculative ventures and more like traditional infrastructure businesses, optimizing for efficiency, scale, and access to capital. This maturation bodes well for Bitcoin’s long-term security and decentralization, even as it raises the barrier to entry for smaller participants.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Mining profitability calculations are estimates and actual results may vary based on hardware, electricity costs, and market conditions. Always conduct your own research before making mining investments.