Just weeks after Bitcoin’s fourth halving sliced block rewards from 6.25 BTC to 3.125 BTC, the mining industry is feeling the squeeze. On May 13, 2024, data from Hashrate Index reveals that Bitcoin’s network hashrate has fallen 11% from its all-time high of 655 EH/s recorded on the eve of the halving, settling at 583 EH/s on the 7-day average. The decline marks one of the most significant post-halving hashrate drawdowns in Bitcoin’s history.
TL;DR
- Bitcoin hashrate dropped 11% from 655 EH/s to 583 EH/s following the April 2024 halving
- Hashprice hit an all-time low of $46.69/PH/day on May 9 before rebounding slightly to $50/PH/day
- The network experienced a -5.63% difficulty adjustment on May 9, the largest negative adjustment since December 2022
- Mining profit margins have compressed to roughly 10.6% for an average miner, compared to 13.5% during the December 2022 low
- Public mining companies like Bitfarms, Marathon Digital, and CleanSpark are adjusting strategies amid tightened economics
Hashprice Bottoms Out as Runes Hype Fades
The immediate catalyst behind the hashprice collapse is the rapid decline in transaction fee revenue. In the days surrounding the halving on April 20, the launch of the Runes protocol generated a brief surge in on-chain activity, driving fees to elevated levels and giving miners a short-lived revenue cushion. However, by early May, Runes-related transactions constitute far fewer fees compared to regular transactions. The mempool has largely cleared out, and daily transaction fees have dropped below Q1 2024’s average of 64.39 BTC.
On May 9, Bitcoin mining hashprice crashed to an all-time low of $46.69 per petahash per day. The same day, the network underwent a -5.63% difficulty adjustment — the largest negative adjustment since the FTX-collapse era of December 2022. This difficulty reprieve nudged hashprice back above $50/PH/day, but margins remain razor-thin for operations running older ASIC hardware.
Mining Profitability Under Pressure
Analysis comparing current mining economics to the December 2022 trough paints a sobering picture. Using Coin Metrics’ estimated Bitcoin network efficiency averages and a $0.06/kWh power cost, a hypothetical miner’s profit margin in December 2022 stood at 13.5%. Today, that same miner operates at a margin of just 10.6% — a meaningful compression that threatens operations with higher energy costs or less efficient hardware.
The block reward halving directly cut miner revenue by 50%, but the actual impact varies significantly based on operational efficiency. Miners running next-generation ASICs like the Bitmain S21 Pro, which boasts superior joules per terahash ratings, can still maintain positive margins. Those relying on older-generation machines like the S19 series face a far more precarious situation.
Public Miners Navigate the Post-Halving Landscape
Publicly traded mining companies are deploying a range of strategies to weather the margin compression. Marathon Digital Holdings reported that its average operational hashrate increased 22% month-over-month in May 2024, reflecting aggressive capacity expansion even as per-unit profitability declined. CleanSpark disclosed selling 2.43 BTC in May at an average price of approximately $59,000 to fund operations, while averaging 13.45 BTC mined per day.
HIVE Digital Technologies maintained a positive operating margin through May and announced the acquisition of 1,000 new Bitmain S21 Pro Antminers — a clear signal that the company is investing in efficiency upgrades rather than scaling back. Meanwhile, Bitfarms made headlines on May 13 by announcing the termination of its CEO, signaling governance upheaval at a time when steady leadership could prove critical for navigating post-halving challenges.
Summer Heatwaves Could Force Further Curtailment
Looking ahead, the approaching summer season adds another layer of complexity. Mining operations concentrated in Texas and other warm climates may face mandatory curtailment during heatwaves, when grid operators prioritize residential and commercial electricity demand. This seasonal pressure could trigger additional downward difficulty adjustments in the coming months.
The current hashprice environment will likely restrict growth from less efficient mining operations, accelerating a natural selection process that favors miners with access to low-cost energy, next-generation hardware, and optimized firmware solutions. Companies offering after-market firmware upgrades, such as Luxor’s LuxOS for Antminer devices, are positioning themselves as essential partners for miners seeking to squeeze additional efficiency from their existing fleets.
Bitcoin Hashrate Index Signals Industry Maturation
Despite the short-term pain, the post-halving hashrate adjustment reflects Bitcoin’s self-correcting economic design working as intended. Less efficient miners are being culled from the network, while the most competitive operations continue to expand. The Bernstein research team argued in a May 13 note that Bitcoin’s relatively flat price action around $62,000 to $63,000 is actually beneficial for public miners in the long run, as it prevents the kind of speculative hashprice spikes that attract inefficient short-term operators.
As the industry matures, the post-halving period increasingly resembles a stress test — one that separates well-capitalized, efficiently run operations from those that expanded too aggressively during the bull market. The miners who survive this margin compression will emerge leaner, more efficient, and better positioned for the next cycle of network growth.
Why This Matters
The post-halving mining landscape represents a fundamental reshaping of Bitcoin’s security infrastructure. With block rewards permanently reduced and fee revenue proving volatile, the mining industry must achieve sustainable profitability through efficiency rather than speculation. The companies and operations that adapt successfully will define the next era of Bitcoin mining — one characterized by professional management, cutting-edge hardware, and sophisticated financial hedging strategies.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Mining profitability calculations are based on hypothetical scenarios and may not reflect actual operational results. Always conduct your own research before making investment decisions.
hashprice at $46.69/PH/day all time low and 10.6% profit margins. the weak miners are getting flushed out exactly as expected post-halving
hashprice_watcher $46.69/PH/day at all time low and weak miners getting flushed. exactly the post-halving shakeout the market expected
10.6% margins with energy costs climbing in texas is a double squeeze. some public miners are burning cash just to keep the rigs spinning
11% hashrate drop from 655 EH/s is significant but not catastrophic. the -5.63% difficulty adjustment on may 9 gave miners some breathing room
runes hype gave miners a two-week fee cushion and then disappeared. now reality sets in with block rewards cut in half
runes_fade_ the two-week fee cushion was nice but unsustainable. miners need to plan for the new baseline, not the spike
miners who modeled for 3.125 BTC blocks are surviving fine. the ones banking on runes fee revenue to cover opex are the ones feeling real pain
satoshi_tax_ miners who modeled around runes fee revenue got burned once that spike faded after two weeks
hashprice at 46.69 per ph per day left weak miners with 10.6 percent margins. energy costs in texas made it worse