The recent fall in bitcoin prices is not the only thing that those in space have had to deal with. It has spread to other important aspects of the community such as mining. Due to the declining value of Bitcoin, public and private miners have been struggling to keep up with the recent decline in their cash flow. However, this is not the only problem these miners have had to deal with. Mining production has hit hard for public miners.

Bitcoin production declines

At the end of a highly successful 2021, many public bitcoin miners came up with a roadmap for how to improve their BTC production. Each of these companies came forward with high commitment where they want to get their hashrate. Naturally, the market was doing well at the time, and there was no reason for investors to be skeptical of these plans. But the first half of 2022 painted a grim picture.

Marathon Digital is undoubtedly one of the leaders in the field of universal bitcoin mining, and it has struggled the hardest to deliver on its promise of higher BTC production. Marathon 462 BTC Rare started the year with a good production. However, since then, its production has continued to decline. By the end of May, the mining company had produced only 268 BTC, 42% less than the volume in January.

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The same was true of other top public mines. Although not all of them recorded a steady playmate like a marathon, they have been unable to maintain a steady increase in BTC production. Even Core Scientific has found itself on this rat.

Bitcoin mining

public miners' production remain unsteady | Source: Arcane Research

Bitfarms was the only exception and it maintained steady growth in the first half of 2022. To put it bluntly, Bitfarms saw 301 BTC produced in January. By the end of May, the BTC produced had increased by 43% to 431 BTC.

Many of these companies have experienced increasing mining difficulties in the last five months In addition, they continue to deal with cash flow and profit margins due to the Bitcoin price crash. These losses are also widely characterized by their stock prices. For Marathon Digital, its stock price is trading at its current price of $ 6.87, down from its $ 83.45 year-to-date high at the time of writing. This shows an 81% decrease in the last year alone.

Bitcoin price chart from TradingView.com

BTC losses momentum and falls to $21,000 | Source: BTCUSD on TradingView.com

Nevertheless, the production of bitcoin blocks is increasing again. Compared to 5.86 blocks per hour from the previous week, it has now produced 6.23 blocks per hour, representing an increase of 6.19%. However, mining revenues remained muted with a 0.76% drop last week.

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As prices fall, Bitcoin miners risk losing more of their cash flow. It is predicted that if the current bear market continues, a large number of miners will be laid off due to their inability to finance their mining activities.

Featured image from Coingape, charts from Arcane Reseach and TradingView.com

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