TechFlow news — Galaxy Digital, a financial services firm focused on cryptocurrency, has released its Bitcoin mining industry report for the first half of 2024. The report shows that network difficulty dropped 10% from a peak of 88.1 T (implying 630 EH of hash rate) to 79.5 T (569 EH) by early July, and currently stands at 82.0 T (587 EH). In Q1 2024, publicly traded mining companies raised $1.8 billion in equity capital, marking the highest quarterly total in nearly three years.
Galaxy Digital expects debt capital markets to re-activate during the second half of 2024 through 2025 as the value of available power capacity surges. The report notes that mining firms with approved large-scale power capacity, long-term infrastructure procurement, and access to water resources and fiber-optic connectivity will be best positioned to capitalize on opportunities brought by the AI revolution.
Galaxy Digital has raised its year-end 2024 global hash rate forecast from the previous 675–725 EH to 725–775 EH. From January 1 to July 23, 2024, Bitcoin miners earned 12,970 BTC (approximately $863 million) in transaction fees, amounting to about 55% of the total transaction fee revenue for all of 2023.
The report also reveals that over $460 million in M&A transactions have been completed so far this year, primarily involving the sale of mining facilities, reverse mergers, and corporate acquisitions. Galaxy Digital anticipates that industry consolidation and M&A activity will continue.
