A Record-Breaking Achievement
According to data from CoinWarz, Bitcoin’s hashrate – the total computing power securing the network – reached a new all-time high of over 1,000 exahashes per second (EH/s) on January 3. This milestone marks a significant achievement for the network, demonstrating its growing security and resilience.
A Nearly Double Increase in 12 Months
To put this accomplishment into perspective, Bitcoin’s hashrate was hovering around 510 EH/s just one year ago. This represents a nearly double increase, highlighting the rapid growth of the network’s computing power. At the time of this article’s publication, the hashrate had retraced to approximately 780 EH/s.
The Rising Hasrate: A Testament to Bitcoin Miners’ Dedication
The network’s increasing hashrate is a clear indication that miners are devoting more computational resources to the blockchain, thus improving the network’s security. This trend is particularly notable given the challenges posed by the April halving, which reduced mining rewards from 6.25 BTC to 3.125 BTC per block.
Overcoming Headwinds
The halving was expected to have a significant impact on the mining industry, but Bitcoin’s strong performance in 2024 has largely offset these headwinds. For cash-heavy mining companies like Riot Platforms and CleanSpark, the reduction in mining rewards was particularly concerning. However, miners have found ways to adapt, acquiring other miners with turn-key facilities to increase near-term hashrate and expand their power pipeline.
JPMorgan’s Insight: Miners’ Electrical Power Assets and BTC Holdings
In a research note shared with Cointelegraph on December 10, JPMorgan highlighted the value of miners’ electrical power assets and BTC holdings. The bank raised price targets for four Bitcoin mining stocks to reflect this growing trend, citing the stock performance of MicroStrategy – a software company turned de facto Bitcoin fund.
MicroStrategy’s Impressive Performance
As of December 10, MicroStrategy traded at a roughly 2.4x multiple to the value of its BTC treasury. This indicates that investors are increasingly recognizing the value of miners’ electrical power assets and their accumulated BTC holdings. For context, other notable mining firms like Marathon, Riot, and CleanSpark hold BTC treasuries worth approximately $4.4 billion, $1.7 billion, and $910 million, respectively.
Institutional Inflows: A Growing Trend
The rising hashrate – and the resultant improvement in network security – is particularly important as institutional investors pour capital into Bitcoin exchange-traded funds (ETFs) and other regulated cryptocurrency investment vehicles. The increasing demand for BTC has led to a significant milestone, with Bitcoin ETFs breaking $100 billion in net assets for the first time, according to data from Bloomberg Intelligence.
A Steep Acceleration in Institutional Participation Expected
Asset manager Sygnum expects this trend to accelerate in 2025 as large institutional investors – including sovereign wealth funds, endowments, and pension funds – add Bitcoin allocations. According to Sygnum’s chief clients officer, Martin Burgherr:
"With improving US regulatory clarity and the potential for Bitcoin to be recognized as a central bank reserve asset, 2025 could mark steep acceleration for institutional participation in crypto assets."
A Growing Recognition of Cryptocurrency Investment Vehicles
The increasing recognition of cryptocurrency investment vehicles – particularly Bitcoin ETFs – is driving growth in institutional inflows. As more investors become familiar with the benefits and risks associated with BTC, we can expect to see continued growth in this area.
Regulatory Clarity: A Key Factor in Institutional Participation
The improvement in US regulatory clarity is expected to play a significant role in accelerating institutional participation in crypto assets. The potential for Bitcoin to be recognized as a central bank reserve asset also holds great promise, driving further investment into the space.
Conclusion
In conclusion, Bitcoin’s hashrate reaching a new all-time high of over 1,000 EH/s is a testament to the dedication and innovation of miners worldwide. As institutional investors continue to pour capital into BTC, we can expect to see continued growth in the network’s computing power and security. The increasing recognition of cryptocurrency investment vehicles – particularly Bitcoin ETFs – will drive further institutional participation, solidifying BTC’s position as a leading store of value.
Sources:
- CoinWarz
- JPMorgan Research Note (shared with Cointelegraph)
- BitcoinTreasuries.NET data service
- Bloomberg Intelligence
- Sygnum statement