Bitcoin’s hashrate, the total computing power securing the blockchain network, reached a milestone of over 1,000 exahashes per second (EH/s) on January 3, 2025, according to data from CoinWarz. This figure represents nearly double the hashrate recorded in January 2024, which hovered around 510 EH/s.
Although the hashrate has since retraced to approximately 780 EH/s, the sharp increase over the past year underscores the growing computational resources being allocated by Bitcoin miners, significantly bolstering the network’s security.
Miners Adapt to Post-Halving Dynamics
The surge in hashrate comes despite Bitcoin’s April 2024 halving, which reduced mining rewards from 6.25 BTC to 3.125 BTC per block. Major mining companies such as Riot Platforms and CleanSpark have navigated these challenges by expanding operations and acquiring facilities to enhance their near-term hashrate capacity.
In a December 10 research note, JPMorgan highlighted how mining firms strategically increased their power pipeline and operational efficiency. Many miners have also prioritized accumulating Bitcoin on their balance sheets, positioning themselves to benefit from the cryptocurrency’s strong performance in 2024.
Bitcoin Mining Stocks Outperform
Bitcoin miners’ electrical power assets and BTC holdings have bolstered their stock valuations. JPMorgan raised its price targets for four mining stocks in December, citing their significant Bitcoin treasuries.
Marathon, Riot, and CleanSpark currently hold BTC reserves valued at $4.4 billion, $1.7 billion, and $910 million, respectively, according to BitcoinTreasuries.NET. These holdings underscore the growing trend of miners treating Bitcoin as a core balance sheet asset, a strategy mirrored by MicroStrategy. The software company, which has transitioned into a major Bitcoin investor, trades at a 2.4x multiple to the value of its BTC holdings, per JPMorgan.
Institutional Adoption Gains Momentum
Bitcoin’s rising hashrate coincides with increasing institutional adoption, particularly through Bitcoin exchange-traded funds (ETFs). In November, Bitcoin ETFs surpassed $100 billion in net assets for the first time, according to Bloomberg Intelligence.
Asset manager Sygnum projects that institutional participation will accelerate further in 2025 as sovereign wealth funds, endowments, and pension funds incorporate Bitcoin into their portfolios.
“With improving U.S. regulatory clarity and the potential for Bitcoin to be recognized as a central bank reserve asset, 2025 could mark a steep acceleration for institutional participation in crypto assets,” said Martin Burgherr, Sygnum’s chief clients officer.
