Bitcoin miners increased hash rate and production despite falling BTC prices in 2022

Thecost of Bitcoin (BTC) fell by 64.68%to $16,870 from around$47,766 at the beginning of the year, CryptoSlate information programs. At the same time, share prices of Bitcoin mining business fell by 91% on average from their 52-week high prices, according to Compass Mining.

However, this has actually not discouraged mining companies from increasing their Bitcoin mining abilities throughout 2022, as per a Compass Mining report. CleanSpark, for example, grew its BTC mining hash rate from 1.9 EH/s at the start of 2022 to 6.0 EH/s or about 62,000 miners to date– an increase of 189%, the Compass Mining report stated.Bit Digital

and Riot Blockchain bumped their hash rate by 157% and 148%, respectively. Additionally, according to the report, Bitfarms, Digihost, and Marathon Digital Holdings each increased their mining hash rate by 100%.

The increasing mining capabilities inevitably led to increased Bitcoin production throughout 2022. For instance, Riot Blockchain has actually mined 4,872 BTC as of November 2022 compared to 3,812 BTC and 1,033 BTC produced in 2021 and 2020, respectively.CleanSpark has produced 4,157 BTC year-to-date compared to 1,528 BTC mined in 2021, based on the report. On Dec. 21, Bitfarms announced that it had mined its 5000th BTC in 2022, leaving its record of mining 3,452 BTC in 2021. Miners purchased BTC in a bullish spirit, then sold them in the middle of a liquidity crunch In early 2022, regardless of Bitcoin slipping far below its all-time high of$69,000 embeded in Nov. 2022, miners were still bullish on the marketplace, the Compass Mining report stated. Therefore, lots of miners proceeded to use their cash reserves to acquire BTC in addition to mining them.In the very first week of January 2022, Bitfarms announced the purchase of 1,000 BTC

for $43.2 million, increasing its BTC holdings by 30%. In the 2nd half of January, Argo Blockchain purchased 172.5 BTC.Bitfarms offered 7,309 BTC in 2022, consisting of the 1,000 BTC purchased in January, while Argo Blockchain likewise sold the majority of its BTC at much lower rates. Both companies likewise borrowed large sums– Bitfarms went into a$32 million mining equipment financing agreement with BlockFi, while Argo Blockchain released regards to extensive loans from New York Digital Investment Group– to fund growth.With the bear cycle running complete steam, a lot of miners faced liquidity concerns. Core Scientific got the most harsh hit, leading it to state bankruptcy under Chapter 11 on Dec. 21. Greenidge is likewise going through restructuring in order to avoid bankruptcy and Argo Blockchain was also delisted from LSE amidst personal bankruptcy fears.Posted In: Bitcoin, Mining Recent mining Stories The centralization of Bitcoin: Behind the two mining pools