Public miners increased bitcoin production, hash rate in January

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The first production update of 2023 from listed Bitcoin (BTC) miners shows a steady increase in hashrate and an increase in BTC production compared to the previous month, according to new analysis from Hashrate Index.

The majority of public miners increased their bitcoin production in January, with CleanSpark boosting it by 50%, to a record monthly production of 697 bitcoins. On top of BTC production, Core Scientific reached 1,527 coins mined in January, followed by Riot, the second largest producer, which mined 740 bitcoins in the month.

Marathon and Cipher saw significant increases in Bitcoin production, reaching 687 and 343 Bitcoins created, respectively, compared to 475 and 225 in December.

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Public miners: monthly bitcoin production. Source: Hashrate Index and Luxor

According to Bitcoin mining analyst Jaran Millrod, better weather conditions in January and stable electricity prices helped miners increase production. As the weather improved in January, electricity prices stabilized, and miners were able to achieve higher uptime.”

The hash rate for most public miners increased in January, but at a slower pace than expected. The exception is Texas-based Cipher which has boosted its hash rate by more than 50%, with 4.3 EH/s. “Cipher has been developing aggressively during this bear market, and I expect the company to reach its hashing target of 6 EH/s of self-mining capacity by the end of Q1 2023,” Melero noted.

CleanSpark also increased its hash rate to 6.6 EH/s from 6.2 EH/s in December, following a series of acquisitions in late 2022. The Hive also registered growth in January, with its hash rate up nearly 30%, from 2.1 to 2.7 EH. /s. “The company continues to replace its fleet of GPUs with ASICs, mainly with Buzzminers designed in-house,” he commented on Hive Performance.

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Public Miners: Self Mining Hashrate. Source: Hashrate Index and Luxor

Core Scientific continued to increase its hash rate, reaching 17 EH/s in January from 15.7 in December. However, the numbers are expected to be affected by the company’s bankruptcy proceedings, which include a deal with New York Digital Investment Group (NYDIG) to pay off an outstanding $38.6 million in debt by delivering more than 27,000 used miners as collateral. It represents 18% of the core science rigs.

Core Scientific filed for Chapter 11 bankruptcy in December. 21, seeking to reorganize its debt after months of financial distress due to rising electricity costs and falling bitcoin prices.

Melero noted, “These companies have, on several occasions, extended the timeline for their massive retail expansion goals, and most of them have plans to significantly increase their operating retail rate by the end of the second quarter of this year. At the current rate, most of these companies have plans to increase their retail rate.” Operational retail will significantly increase by the end of the second quarter of this year. They will likely have to push their expansion plans into the future.”