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Bitcoin Mining: Profitability Declines Despite Increased Production
According to a report by it-boltwise.de, the profitability of Bitcoin mining experienced a 7.4% decline in March. This drop is attributed to an 11.2% decrease in the average Bitcoin price and a 9.1% reduction in transaction fees. Despite these challenges, U.S.-listed mining companies increased their production, mining 3,534 Bitcoins in March compared to 3,002 in February. These companies accounted for 24.8% of the total network activity, up from 23.6% in the previous month.
Among the top performers, MARA Holdings mined 829 Bitcoins, the highest in March, followed by CleanSpark with 706 BTC. MARA also boasted the largest installed hashrate at 54.3 Exahashes per second, while CleanSpark held the second position with 42.4 EH/s. These figures highlight the critical role of hashrate in determining success in Bitcoin mining.
| Company | Bitcoin Mined (March) | Hashrate (EH/s) |
|---|---|---|
| MARA Holdings | 829 | 54.3 |
| CleanSpark | 706 | 42.4 |
In April, Bitcoin prices remained stable, while the S&P 500 index fell by 6%. This stability could be linked to a weakening U.S. dollar, potentially enhancing Bitcoin's performance compared to traditional stock markets. The report also notes that macroeconomic factors and technological advancements, such as more efficient mining chips, could influence the sector's profitability. However, rising energy costs and environmental regulations may pose challenges.
"The coming months could be decisive in determining how these factors impact the long-term profitability of Bitcoin mining," the report concludes.
- Profitability dropped by 7.4% in March.
- U.S.-listed miners increased production to 3,534 BTC.
- MARA Holdings led with 829 BTC mined and a hashrate of 54.3 EH/s.
Trump Family Ventures into Bitcoin Mining
Vietnam.vn reports that the Trump family has made a significant entry into the cryptocurrency sector, including Bitcoin mining. Their new venture, American Bitcoin Corp., is a collaboration with Hut 8 Mining Corp., one of North America's largest Bitcoin mining companies. The Trump family holds a 20% stake in the company, while Hut 8 controls the remaining 80%. Hut 8 has contributed approximately 61,000 mining machines to the partnership.
Eric Trump, now Chief Strategy Officer of American Bitcoin, described the project as a "hedge" against risks in the family's real estate portfolio. He also suggested the possibility of establishing a "Bitcoin reserve fund" and taking the company public in the future. Donald Trump Jr. emphasized the family's strong belief in Bitcoin and its profit potential, calling the venture a "huge opportunity."
This move aligns with the family's broader ambitions in the cryptocurrency space, which include plans for a Bitcoin ETF and other digital financial products. The report highlights the potential impact of this large-scale mining project on Bitcoin supply, price volatility, and regulatory developments.
- American Bitcoin Corp. is a joint venture with Hut 8 Mining Corp.
- The Trump family holds a 20% stake in the company.
- 61,000 mining machines have been contributed by Hut 8.
"The Trump family's entry into Bitcoin mining could influence institutional and retail investor sentiment, as well as regulatory policies," the report notes.
Sources:
- Tether nutzt Ocean für dezentralisiertes Bitcoin-Mining
- Bit Digital subsidiary continues colocation side-hustle with new Quebec data centre
- Bitcoin-Mining: Rückgang der Rentabilität trotz steigender Produktion
- Familie Trump landet in der Kryptowährung: Milliarden-Ehrgeiz oder „Glücksspiel“ um die Macht?
