On January 3, Bitcoin’s network achieved a new milestone with its hashrate exceeding 1,000 exahashes per second (EH/s). This represents a significant increase from the levels recorded a year ago, nearly doubling from 510 EH/s in January 2024. The surge in hashrate, a measure of the total computational power used to process transactions and secure the blockchain, highlights the continued dedication of Bitcoin miners to enhancing the network’s security despite reduced rewards from the latest halving.
Despite the challenges posed by the halving, which reduced mining rewards from 6.25 BTC to 3.125 BTC per block, miners like Riot Platforms and CleanSpark have been strategically increasing their output. In 2024, these firms mitigated financial headwinds by acquiring additional miners with established facilities, as noted in a report by JPMorgan. This move was supported by the accumulation of Bitcoin on balance sheets, leading JPMorgan to raise price targets for certain Bitcoin mining stocks, factoring in their electrical power assets and BTC holdings.
The growing hashrate comes at a time of rising interest from institutional investors in Bitcoin, especially in regulated investment vehicles like exchange-traded funds (ETFs). In November, Bitcoin ETFs topped $100 billion in net assets for the first time, signaling strong demand from large investors. With expectations from asset manager Sygnum of increased institutional participation, especially with potential regulatory clarity in the U.S., 2025 could see further acceleration in Bitcoin allocations.
As institutional money flows into Bitcoin investments, the improving security of the blockchain, as indicated by the rising hashrate, is crucial for maintaining trust and stability in the market.
