This piece initially appeared in Miner Weekly, the weekly dispatch from BlocksBridge Consulting, delivering insights on Bitcoin mining and data analysis from TheMinerMag. Subscribe for weekly updates directly to your inbox.
The Bitcoin mining sector is witnessing a shift in the established competitive dynamic. During past periods of market prosperity, publicly listed mining enterprises aggressively sought to acquire the latest mining equipment. They funneled vast sums into hardware purchases, aiming to demonstrate to investors their ability to outpace competitors in expanding their hash rate. However, current conditions present a different scenario.
Persistently pressured hash price, influenced by continued hash rate growth and relatively low transaction fees, is impacting the mining sector. Moreover, with increasing attention focused on artificial intelligence and high-performance computing, mining firms are scaling back their equipment acquisition activities. As a result, equipment manufacturers are now grappling with excess inventory. Unlike mining companies, chipmakers face difficulties in pausing orders from their foundry partners without jeopardizing long-term supply chain relationships.
This tension has effectively transformed the competitive landscape into a contest among the manufacturers themselves, each vying to find innovative strategies to activate and generate revenue from their mining machines.
Canaan has consistently exemplified this strategic pivot. However, the recent escalation in installed hash rate underscores how the established chip producer has intensified its efforts. During the first half of 2025, the Nasdaq-listed entity reportedly sold around 12 EH/s of computational power. Simultaneously, its internally managed hash rate increased from under 5 EH/s at the close of December to over 8 EH/s by July.
Bitdeer has demonstrated even more accelerated growth. The Singapore-based organization significantly expanded its proprietary hash rate from 8.9 EH/s in December to 22.5 EH/s by July, primarily through the utilization of its own SEALMINER hardware. In both instances, surplus equipment that would typically have been delivered to clients is now being deployed internally.
The most telling change comes from the sector leader, Bitmain. Experiencing decreased institutional demand from the United States, the Beijing-headquartered company has strategically shifted its focus towards offering hosted hash rate services, specifically connected to its Antminer S21 Hydro and S21e Hydro systems.
Instead of targeting seasoned mining businesses, Bitmain is aiming to attract new participants to the sector. Ruihe Data, a Hong Kong-based fintech corporation with a market capitalization of roughly HK$1.9 billion (US$240 million), recently subscribed to these services. In a filing made last week, Ruihe described Bitcoin mining as a “distinct business segment” designed to diversify its revenue streams beyond its core big data and AI solutions.
This agreement essentially positions Ruihe as a cloud-mining customer. Clients such as Ruihe compensate Bitmain with service charges in exchange for a portion of mining rewards, with flexible options to retain, return, or upgrade mining machines after cumulative payouts reach 105% of the initial cost. This arrangement exists in addition to the proprietary hash rate capacity associated with Bitmain through BitFuFu and Cango, totaling nearly 100 EH/s.
According to TheMinerMag’s examination of production updates from July, Bitdeer ranked as the sixth-largest proprietary mining operation by realized hash rate. The company is aiming for a year-end range of 30 to 40 EH/s with its SEALMINERS. If realized, Bitdeer could potentially match or exceed the output of Riot. Under such conditions, three of the five largest publicly traded mining firms will operate with equipment designed internally or by affiliated companies: Bitdeer with SEALMINERS, Cango with Antminers, and MARA with Teraflux miners.
Fundamentally, this seemingly continuous production capacity will continue to drive network hash rate growth, which has already surpassed the 1 zetahash milestone over the preceding week on a seven-day moving average basis. With Bitcoin’s transaction fees accounting for less than 0.8% of the block rewards, the question arises: Will mining hardware producers ever reduce production, or even cease it altogether?
Hardware and Infrastructure Updates
- Bitmain Expands into Hosted Bitcoin Mining for Hong Kong Firm Amid US Market Adjustments – TheMinerMag
- Bitcoin Network Hash Rate Reaches 1 Zettahash Milestone While Transaction Fees Hit Low Point – TheMinerMag
- HIVE Completes Second Phase of Paraguayan Mining Project, Achieving 18 EH/s – Link
Corporate Developments
- IREN Announces $20M Settlement with NYDIG, Increases GPU Capacity as Stock Values Surge – TheMinerMag
- American Bitcoin Begins Trading on Nasdaq Following Merger with Gryphon – TheMinerMag