Five Bitcoin mining pools dominated 2023 with 84% of total blocks

In the span from December 30, 2022, to December 30, 2023, the Bitcoin mining landscape experienced a transformative year marked by significant achievements and industry-leading players. A total of 54,002 bitcoin blocks were mined during this period, with Foundry USA emerging as the top contributor, mining an impressive 16,492 blocks. The mining community navigated through 27 difficulty adjustments, predominantly increases, culminating in a record-setting hashrate of 545 EH/s on December 24, 2023.

Bitcoin miners produced over 54,000 blocks in 2023

Bitcoin miners enjoyed a prosperous 2023, collectively unearthing over 54,000 BTC blocks. Each of these blocks, containing 6.25 freshly minted bitcoins and associated fees, showcased the robustness of the mining ecosystem. Foundry, Antpool, F2pool, Viabtc, and Binance Pool stood out as the primary mining pools, collectively responsible for the discovery of 45,707 block rewards throughout the year. A notable trend in 2023 was the concentration of mining power, with five dominant pools contributing to over 84% of all BTC blocks.

Luxor, with 1,311 blocks (2.43%), btc.com with 978 blocks (1.81%), and Braiins Pool capturing 894 blocks (1.66%) added to the diversity of significant contributors. The year reported 147 empty blocks, accounting for approximately 0.27% of the total, with Antpool, F2pool, and Viabtc being the primary sources, generating 65, 20, and 21 empty blocks, respectively. One of the standout accomplishments of the year was the exponential increase in Bitcoin miners’ capabilities, leading to the historic hashrate of 545 EH/s.

Unprecedented hashrates and advanced generation miners

This marked a substantial growth compared to January 2016 when Bitcoin’s hashrate first reached one quintillion hashes per second (H/s). Closing the year at 529 quintillion H/s, this figure highlighted the remarkable evolution of the network’s total hashpower over the past eight years. Key industry players, including Bitmain, Canaan, Microbt, and Auradine, played a pivotal role in this growth by introducing advanced-generation miners in 2023. These cutting-edge devices, boasting capabilities of over 375 terahash per second (TH/s), demonstrated not only increased power but also superior efficiency, with ratings below 20 joules per terahash (J/T).

Foundry, Antpool, and F2pool reported substantial increases in their hashrates, with Foundry reaching 147 EH/s from 71.84 EH/s, Antpool growing from 49.95 EH/s to 139 EH/s, and F2pool increasing from 31.99 EH/s in December 2022 to 62.27 EH/s. As the year drew to a close, it became evident that 2023 marked a period of immense growth and innovation for the Bitcoin mining industry. The looming halving event in April 2024, set to reduce block rewards from 6.25 to 3.125 BTC, added an element of anticipation and signaled a significant shift for the sector.

However, the industry’s demonstrated resilience and advancement throughout 2023 positioned it well to navigate the changing landscape following the reduction in subsidies. The approach of the halving event adds a layer of intrigue, prompting a closer examination of how dominant mining pools will strategically navigate the evolving terrain. The transformative year of 2023 in Bitcoin mining showcased increased hashrates, the introduction of advanced mining technology, and a concentration of mining power among key players.