State of bitcoin mining hash rate in 2023 so far 

In over a decade, digital currencies have become an increasingly popular investment option for individuals and institutions. Investors are turning to crypto projects to shield them from high inflation rates, experience high returns, and explore the innovative problem-solving blockchain technology.

Bitcoin, a Proof-of-Work(PoW) based blockchain network, remains the number one crypto by market capitalization. Since its launch, bitcoin has been miners’ prominent source of income. However, recent times have seen low profits due to challenges like high operational costs and the ongoing bear market. 

Nonetheless, bitcoin’s mining hash rate hasn’t taken a massive blow and has risen by about 50% compared to last year’s values. So what is the state of the bitcoin mining hash rate in 2023 so far? Let’s have a look. 


Hashrate for BTC crossed 300 EH/s as the industry gains breathing room


The hashrate of the bitcoin network measures computing power, hitting 300.65 exhash per second (EH/s) in February as miners gained some breathing room due to a recovery in the bitcoin price and a drop in energy costs.

According to data from Luxor Technologies, the hashrate increased by 100 EH/s in about a year, twice as quickly as it grew from 100 EH/s to 200 EH/s. 

The economics of mining have recently improved. And bitcoin’s price also rose in the weeks between January and February. From below $60/PH/s at the end of 2022, the hash price—a gauge of mining profitability—rose to over $70/PH/s in 2019.


source: Bitcoin hashrate index


With profitability just around the corner, miners, including those with less effective configurations, have reconnected the equipment they put aside to combat market challenges.

The Chief of Research at TheMinerMag, Wolfie Zhao, believes at 6 cents per kilowatt hour {kWh}, equipment with an efficiency of 50J/TH is now profitable. He stated that a month ago,  equipment with a 40J/TH efficiency could hardly make any meaningful profits.

Jaran Mellurud, an analyst at mining services provider Luxor Technologies, said, “Although the Bitcoin hashrate increased from 200 to 300 EH/s in less than a year, it will likely take much longer before it surpasses 400 EH/s.” He suggested that come the end-2023, hash rates will still lie below 350 EH/s due to the poor mining economics of 2022.

The network growth is “here to stay,” according to D.A. Davidson analyst Chris Brendler, given the current bitcoin pricing, in a note to investors on January 31. Natural gas prices have recently decreased, which results in cheaper power costs for miners. By the end of 2023, according to the expert, the hashrate will reach 363 EH/s.


Despite market challenges, bitcoin mining is booming


The creation of new bitcoins and the verification of transactions on the blockchain is done through bitcoin mining. Bitcoins are given to miners in exchange for using specialized computers to solve complex mathematical puzzles and validate transactions.

The cost of electricity, the value of bitcoin, and the mining difficulty are just a few of the variables that affect how profitable mining bitcoin is. The mining difficulty measures how much processing power is necessary to validate transactions, and it rises as more miners join the network.

Bitcoin miners have faced difficulties due to the fluctuating price of bitcoin in recent years. Although there has been an upward tendency overall, certain miners have been able to adjust and continue to generate money.

The rising cost of electricity, which can be a considerable expenditure for miners who need to run numerous specialized computers continuously, is another possible obstacle to Bitcoin mining. Several miners have looked for ways to lower their energy costs, such as relocating their operations to places with less expensive electricity or switching to renewable energy sources.

The growing complexity of the arithmetic problems that must be solved to validate transactions poses a possible hurdle for Bitcoin mining. It can reduce mining profitability for lone miners needing more resources to stay competitive. This difficulty is frequently changed to maintain a constant pace of block production.

However, If bitcoin miners can adjust to the shifting market conditions and efficiently control their costs, mining bitcoin can still be profitable despite the difficulties. Yet hazards are involved because the sector is extremely cutthroat and requires large investments in specialized gear, electricity, and other operational costs.



Why bitcoin mining might do well in 2023


Following are some possible explanations for why bitcoin mining could prosper in 2023:

The Bitcoin halving cycle: A process where the block reward miners earn is divided in half and generally takes place every four years. The most recent halving occurred in May 2020, so the following should happen around 2024. In the years after a halving, bitcoin’s price tends to rise, which can improve miners’ earnings.

Growing adoption: Individuals and institutions are increasingly adopting bitcoin and other cryptocurrencies. The demand for mining services will likely rise as more people use and invest in bitcoin, increasing miners’ profits.

Regulatory clarity: Authorities and financial organizations worldwide are starting to lay out more precise rules regarding cryptocurrencies. More institutional use of bitcoin may result from the increased regulatory certainty, and miners active in the market may also benefit.

Advancement of technology: Improvements in mining technology have made it easier and more affordable for miners to operate their equipment. Mining gear and software are also continuously being improved. Furthermore, the availability of renewable energy sources like solar and wind power is expanding, lowering the electricity cost for miners and making bitcoin mining more environmentally responsible.





Bitcoin miners had to abruptly adjust to a new, gloomy reality, which made 2022 a shocking year for them. Miners can embrace the prudent approach that will be the focus of bitcoin mining in 2023 now that the shock has subsided.

This year, miners will prioritize strengthening their balance sheets and cutting expenses to improve the health of their businesses. Several publicly traded mining companies may merge or become private due to cost-cutting efforts. Some miners may be required to restructure their balance sheets, which may involve selling assets to reduce debt or converting debt into equity.

Increasingly complex risk management is one aspect of the megatrend of caution that will influence bitcoin mining in 2023. The hedging of electricity costs and the sale of hash price NDF contracts are two strategies miners will use to safeguard cash flows.