Bitmain Reveals An 88% Reduction In Its Bitcoin Mining Power

by | May 8, 2019 | Bitcoin, Cryptocurrency, Cryptocurrency News

Bitmain | Mining Power | Bitcoin Mining

Bitmain, the Bitcoin mining giant has been reportedly cutting back on its capacity, derived from that observation that Bitmain’s internal bitcoin mining operations are generating 88 percent less computing power in comparison to a month ago. 

As per the hashing power disclosure, that the Bitmain releases each month, the hash rate of all Bitmain-owned hardware running the SHA256 algorithm that the bitcoin and bitcoin cash networks are based on, have dropped down to just 237.29 quadrillion hashes per second (PH/s) as of May 7. Notably, just a month ago, it was at  2,072 PH/s.

Based in Beijing, the firm manufactures mining equipment that it uses to mines coin for itself and sell it to others as well. Bitmain discloses the hashrate of the machines it owns, monthly since July last year. As per the archived pages available online the hash rate was 1,692 PH/s that month, and then increased to 2,339 PH/s in October.

In March, the figure dropped below 1,700 PH/s connecting with the overall decline of the bitcoin network’s total computing power since November of last year as the token plunged below $4,000.  In early April, it climbed before falling to its latest steep drop. The drop partly drives Bitmain’s share of the bitcoin network’s total computing power to shrunk from four percent to now just 0.4 percent.

Considering all the hashing power comes from the more widely used AntMiner S9, each with a hash rate of 14 tera hashes per second (TH/s), which may apply that Bitmain purportedly ceased using more than 130,000 machines to mine for itself. 

The cutback becomes further noticeable as many miners in China have been gearing up to take advantage of cheap hydroelectric power during the coming rainy season.  As recently as March, Bitmain was said to be planning to deploy $80 million worth of its own machines this summer.

This does not imply that Bitmain has to shut down all its mining equipment. Notably, while the company’s share of computing power on the network has declined, the denominator has grown i.e. the bitcoin’s total hash power just reached a six-month high over 58,000 PH/s on May 2, as per data from blockchain.info. 

Read more: Crypto Exchange Binance Gets Hacked And Lost $40.7 Million in Bitcoin

Image Source – Pixabay.com

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