Bitcoin Hashrate Growth Slows as Market Conditions Challenge Smaller Miners

Bitcoin’s hashrate growth slowed in January, marking a shift in the mining landscape, according to a new report from TheMinerMag.

After months of consistent expansion, the network’s difficulty experienced its first drop since September. While publicly traded mining firms continue to boost their computational power, their growth has not been sufficient to offset the exit of smaller, less-resourced operators.

Despite these shifts, total Bitcoin (BTC) mining revenue remained steady at $1.4 billion for the month. Publicly listed mining companies now control nearly 30% of the total hashrate and collectively hold around 99,000 BTC, valued at approximately $9.7 billion.

Dominance of Large Mining Firms Increases

Major mining players continue to solidify their dominance. Marathon Digital (MARA) maintained its position as the top miner with a realized hashrate of 41.65 EH/s, followed by CleanSpark at 34.77 EH/s. Riot Platforms, which has been aggressively expanding, now holds 31.27 EH/s.

“The competition among firms in the 30 EH/s range is intensifying, while mid-sized operators—such as Core Scientific, Cipher Mining, and Bitfarms—are struggling to keep pace,” the report stated.

Impact of Bitcoin Halving on the Mining Sector

The recent Bitcoin halving event has further squeezed profit margins, making it harder for smaller miners to stay afloat. As block rewards decrease, larger operations that were already well-positioned for the event are gaining a greater share of the market.

To counter reduced mining profitability, some firms are pivoting toward alternative revenue streams, such as hosting infrastructure for artificial intelligence (AI) and high-performance computing (HPC) clients.

Mining Hardware Imports Decline Amid Market Shifts

A slowdown in mining hardware imports to the U.S. has contributed to the stabilization of Bitcoin’s hashrate growth. However, select firms—including Blockchain Power Corp and AcroHash—are continuing to invest in advanced cooling systems and mining infrastructure from manufacturers like Bitmain.

Looking forward, TheMinerMag forecasts another difficulty adjustment decline in February as unfavorable market conditions push more small-scale miners out of the industry.