Public Bitcoin miners are expanding their hashrate share Public Bitcoin miners are expanding their hashrate share
During the 2021 bull run, many of public miners invested heavily in mining rigs, allowing them to expand and improve their operations.
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Updated: Oct. 25, 2022 at 8:15 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
There was a massive surge in public miners’ Bitcoin hashrate share as it has steadily grown during the last year, according to a report from the Hashrate Index.
Occasioned by the enormous funds derived from the 2021 bull run, many of these miners invested heavily in mining rigs, thereby widening and enhancing their operations. According to the report, this development led to a continuous rise in their Bitcoin hashrate.
Prior to these expansive investments by these public miners, their hash rates were usually lower than those of private miners. A year ago, public miners recorded an aggregate 15 EH/s hashrate, whereas private miners recorded a total capacity of 134 EH/s, making up 90% of the network.
Public miners catching up with private counterparts
While public miners heavily invested in their expansion, private miners lacked access to funds and couldn’t invest. Because of this development, private miners are now experiencing slower growth rates than public miners.
Worth noting, public miners have, over the year, recorded a whopping 295% increase in capacity, leaving private miners with just 58% growth. As a result, as per current data, public miners have taken over an increasingly larger share of the Bitcoin mining network. Remarkably, public miners now enjoy 58 EH/s hashrate, trailing private hashrate of 177 EH/s.
Even though private miners are far ahead of public miners, emerging reports indicated a continuous increase in the latter’s hashrate share. For instance, in January, Core Scientific, a renowned public mining firm, recorded a surge in its hashrate. Moreover, the level has continued to increase, sitting at about 25%, according to a recent study.
Meanwhile, public miners are still posed to sustain the growth rate till at least mid-2023. This is because many still have thousands of rigs yet to be plugged in. With this, these public miners will continue to expand in capacity, facilitating rapid growth in their hashrate share.
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Soumen Datta
Soumen is a dedicated researcher and writer in the field of cryptocurrencies, DeFi, NFTs, and GameFi projects.
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Core Scientific
Core Scientific is a leader in infrastructure and software solutions for Artificial Intelligence and Blockchain.