A recent analysis from Hashrate Index has revealed a significant increase in Bitcoin (BTC) production among public mining companies in January 2023. According to Bitcoin mining analyst Jaran Mellerud, much favorable weather conditions and stable electricity prices in January allowed miners to boost their production.
With the weather more benevolent in January, electricity prices stabilized, and miners were able to achieve a higher up-time.
Jaran Mellerud
Leading the charge in BTC production was Core Scientific, which mined a record 1,527 coins in January, followed closely by Riot, which mined 740 Bitcoins in the same period. Other notable performers included CleanSpark and Marathon, which increased their production by 50% and 47%, respectively, reaching a monthly production of 697 and 687 Bitcoins. Cipher also recorded a significant increase, reaching 343 Bitcoins generated compared to 225 in December.
Despite the increase in production, most public miners saw a slower-than-expected growth in hash rate in January. The exception was Cipher, which boosted its hash rate by more than 50% to 4.3 EH/s. CleanSpark also recorded growth, increasing its hash rate to 6.6 EH/s from 6.2 EH/s in December. Hive also recorded growth, with its hash rate increasing by nearly 30%, from 2.1 to 2.7 EH/s.
Core Scientific continued to grow its hash rate, reaching 17 EH/s in January, but its figures are expected to be impacted by its bankruptcy proceedings. The company filed for Chapter 11 bankruptcy in December 2022 and reached a deal with the New York Digital Investment Group to pay off an outstanding debt of $38.6 million by handing over more than 27,000 mining machines used as collateral.
Mellerud pointed out that while most of the public mining companies have plans to drastically increase their operating hash rate by the end of Q2 2023, they have extended their timelines on several occasions. “At the current rate, most of them will likely have to push their expansion plans further into the future,” said Mellerud.
Better weather conditions and stable electricity prices in January 2023 have allowed public mining companies to increase their production and reach record levels. While the growth in hash rate was slower than expected, companies such as Cipher and CleanSpark continue to invest in their operations to reach their expansion goals.