U.S. Bitcoin Miners Face 20% Hashrate Drop Due to Summer Heat

U.S.-based Bitcoin mining operations have been significantly impacted by the summer heat, with multiple public miners reporting lower realized hashrates in June. This downturn is primarily due to curtailments aimed at avoiding high power costs and grid penalties during peak demand periods. Cipher Mining, for instance, expanded its installed hashrate capacity to 16.8 EH/s in June but saw a realized capacity of only 10.58 EH/s on average, representing just 62.95% utilization. This marked a decline from the 11 EH/s realized in both April and May, despite the addition of new capacity from its Black Pearl site. Cipher attributed this drop to its decision to curtail power usage more aggressively as part of a “4CP avoidance strategy,” designed to limit electricity consumption during peak demand periods that can trigger higher grid charges.

Similarly, MARA, the largest public Bitcoin miner by installed capacity, reported a production slowdown. Its realized hashrate dropped to 47.13 EH/s in June—down nearly 20% from 58.15 EH/s in May and equating to 82.11% of its total energized fleet. The decrease was primarily due to reduced uptime from weather-related curtailment and the temporary deployment of older machines in Garden City while storm-related damage was being remediated. CEO Fred Thiel also cited natural variation in block production, a factor MARA is exposed to due to operating its own mining pool.

The production slowdowns from curtailment come at a time when Bitcoin’s network hashrate experienced a notable pullback in the latter half of June. After peaking near 950 EH/s earlier in the month, the network’s seven-day average dipped to around 850 EH/s, drawing attention to possible causes ranging from U.S. summer heatwaves to geopolitical tensions. The timing of the decline overlapped with a U.S. military strike on an Iranian nuclear facility, prompting speculation that Iranian miners may have gone offline, contributing to the hashrate contraction. However, the more concrete data from public North American miners underscores that grid-related curtailments—particularly during periods of peak electricity demand—remain a dominant and recurring force shaping network dynamics each summer.

The curtailments have led to a noticeable decrease in Bitcoin production for U.S. miners. The hashrate, a measure of the computational power used to mine Bitcoin, has also been affected, with some miners reporting lower realized hashrate during the summer months. This reduction in hashrate is a direct result of the curtailments, as miners are forced to scale back their operations to comply with grid regulations and prevent potential blackouts. The financial implications for miners are also significant. The reduced output means lower revenues from mining rewards, which can strain the financial health of smaller or less efficient mining operations. Additionally, the curtailments can disrupt the planning and execution of mining strategies, as miners must adapt to the unpredictable nature of grid pressures and regulatory requirements.

Despite these challenges, the U.S. Bitcoin mining sector continues to evolve and adapt. Miners are exploring new strategies to mitigate the impact of summer curtailments, such as investing in more efficient mining equipment and diversifying their energy sources. Some miners are also looking into renewable energy options, which can provide a more stable and cost-effective power supply, reducing their reliance on the grid during peak demand periods. The summer curtailments serve as a reminder of the challenges faced by the Bitcoin mining industry. As the demand for Bitcoin continues to grow, so does the need for reliable and sustainable energy sources. Miners must navigate the complexities of grid pressures and regulatory requirements while striving to maintain profitability and efficiency. The ability to adapt to these challenges will be crucial for the long-term success of the U.S. Bitcoin mining sector.