Bitcoin Miners Enjoyed Significant Growth in Q4 2024 Amid Institutional Adoption and Optimism

According to H.C. Wainwright analysts, the last quarter of 2024 was a positive time for Bitcoin miners, driven by increased institutional adoption and optimism following Donald Trump’s pro-crypto presidential election victory. This growth is expected to continue, despite potential volatility ahead.

Bitcoin Price Surge and ETF Inflows

Bitcoin (BTC) crossed $100,000 for the first time in Q4 2024, peaking at $106,144 in mid-December before closing the quarter at around $93,400. This marked a 48% gain from Q3. The price surge, coupled with record-breaking ETF inflows, contributed to robust earnings for miners. Spot Bitcoin ETFs attracted $16.7 billion in Q4, nearly four times the $4.3 billion recorded in Q3.

The average BTC price for the quarter was $83,432, a 36.7% increase from the previous quarter. Analysts anticipate these trends will drive strong revenue growth and wider profit margins in miners’ upcoming earnings reports.

Expansion in the Mining Sector

The mining sector saw notable expansion, with public miners adding 46 exahashes per second to their operations, bringing total deployed capacity to 235.8 EH/s. The global network hash rate averaged 738 EH/s in Q4, a 17.3% increase from Q3. As of early Q1 2025, the hash rate continues to climb, reaching 833 EH/s by Feb. 2.

Increased Mining Activity and Revenue

Higher BTC prices and increased mining activity pushed total BTC production up 16.4% quarter-over-quarter to 11,366 BTC, while transaction fees surged 59.4% to 1,553 BTC. This drove total miner revenues up 41% to $3.7 billion. The combined market cap of public miners rose 21% to $28 billion, with AI-linked miners outperforming their peers.

Looking Ahead to Q1 2025

The first quarter of 2025 has started strong, with BTC averaging nearly $100,000 and ETF inflows reaching $5.7 billion. However, analysts warn of potential volatility due to ongoing U.S. trade tensions with Canada, Mexico, and China.

Despite short-term uncertainty, analysts view any weakness in BTC or miners as a buying opportunity.

Some key takeaways from Q4 2024 include:

  • Bitcoin price surge and ETF inflows drove robust earnings for miners
  • Expansion in the mining sector, with public miners adding 46 exahashes per second to their operations
  • Increased mining activity and revenue, with total BTC production up 16.4% quarter-over-quarter
  • Potential volatility ahead due to ongoing U.S. trade tensions

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