Bitcoin’s Mining Power Doubles In A Year : What’s Next ?

The Bitcoin network has just crossed a historic milestone and reached, on January 3, 2025, a record hashrate of 1,000 exahashes per second (EH/s). This symbolic threshold represents an unprecedented acceleration of the computing power mobilized to secure the blockchain, as the mining sector undergoes a phase of strategic expansion. In the span of a year, the network’s hashing capacity has doubled, increasing from 510 EH/s in January 2024 to an unprecedented level, illustrating the extent of investments in the industry.

A mining power in full expansion

On January 3, 2025, the Bitcoin network achieved an absolute record, with a hashrate that exceeds 1,000 exahashes per second (EH/s), according to data from CoinWarz. This unprecedented level reflects a spectacular rise in the mining sector, whereas a year earlier, the network’s computing capacity did not exceed 510 EH/s. In just twelve months, hashing power has thus doubled, which indicates a massive strengthening of infrastructures dedicated to securing the blockchain.

This progression has occurred despite an unfavorable context, marked by the reduction of mining rewards following the halving in April 2024. Since this event, mining companies receive 3.125 BTC per block, down from 6.25 BTC previously, which has mechanically halved their revenues. However, instead of slowing their activity, companies in the sector have multiplied investments in more efficient equipment and optimized energy infrastructures. This strategy allows them to absorb the impact of the halving while maintaining their profitability by increasing their processing capacity.

The key role of institutions and mining strategies

The expansion of the mining sector does not solely rely on optimizing infrastructures and increasing computing capacities. Thus, the massive influx of institutional capital has also played a decisive role in this dynamic. In November 2024, Bitcoin ETFs crossed the symbolic threshold of 100 billion dollars in assets under management, marking a historic record. This figure reflects a growing enthusiasm from sovereign funds, pension funds, and major financial institutions, which now perceive bitcoin as a strategic asset.

According to Sygnum, this trend is expected to intensify in 2025, particularly thanks to clearer regulations in the United States and the potential recognition of bitcoin as a reserve asset by certain central banks. Martin Burgherr, Chief Clients Officer of Sygnum, emphasizes that “2025 could mark large-scale institutional adoption, transforming bitcoin into an indispensable asset class.” This evolution could escalate demand for bitcoin and encourage mining companies to strengthen their infrastructures to meet the requirements of an increasingly institutionalized market.

With these new prospects, the rise of the hashrate becomes more than just a technical indicator. It reflects a structural change in the Bitcoin ecosystem, where enhanced network security and the confidence of large institutions shape the contours of a new era for the market’s first cryptocurrency. However, this transformation comes with major challenges, particularly regarding the centralization of mining power, a challenge that could redefine the balance of network governance in the coming years.

The rapid progression of hashrate undeniably strengthens the security and robustness of the Bitcoin network, making any malicious attack nearly unachievable. However, this rise triggers a major issue: accessibility to mining is gradually becoming restricted to the most capitalized players, which increases centralization of processing power. As institutional investments intensify and mining capabilities concentrate among a few giants, a crucial question arises: will bitcoin remain true to its ideal of decentralization, or will it slide towards excessive hashrate concentration? The balance of the network will depend on how the industry manages to combine economic growth with equitable resource distribution in the months to come.