Bitcoin Hashrate Growth Faces Headwinds as Smaller Miners Navigate Harsh Market Challenges

Bitcoin Hashrate Growth Cools as Smaller Miners Struggle to Keep Up

Bitcoin’s hashrate growth decelerated in January, marking a shift in the mining industry as smaller operators face increasing challenges, according to the latest report from TheMinerMag.

For the first time since September, Bitcoin’s network difficulty declined, reflecting a slowdown in overall mining expansion. While large publicly traded firms have continued scaling their operations, their growth has not fully offset the exit of smaller miners unable to compete in the current market.

Despite this, total Bitcoin mining revenue remained stable at $1.4 billion for the month. Publicly listed miners, which collectively hold 99,000 BTC (roughly $9.7 billion in value), controlled around 30% of the network’s hashrate in January.
Major Players Tighten Their Grip on the Market

The competition among top mining firms is heating up. Marathon Digital (MARA) retained its position as the industry leader with a realized hashrate of 41.65 EH/s, while CleanSpark followed at 34.77 EH/s. Riot Platforms, which has been aggressively expanding, reached 31.27 EH/s, closing the gap with its competitors.

“The race among the largest mining firms is intensifying, while smaller and mid-sized operators continue to lose ground,” the report noted.
Halving Puts Pressure on Smaller Miners

The recent Bitcoin halving event has put smaller mining firms under immense financial strain. With block rewards slashed in half, miners with higher electricity costs and smaller-scale operations are finding it increasingly difficult to stay profitable.

To survive, some companies are pivoting toward alternative revenue streams, such as providing hosting services for artificial intelligence (AI) and high-performance computing (HPC) companies.
Mining Hardware Imports Decline as Industry Adjusts

Another key development is the slowdown in mining hardware imports to the U.S., signaling a stabilization in expansion efforts. However, firms like Blockchain Power Corp and AcroHash continue to invest in specialized cooling technology and infrastructure to improve efficiency.

Looking ahead, TheMinerMag anticipates another drop in mining difficulty in February as more small-scale miners exit the market, further consolidating power among the industry’s largest players.