Crypto Billionaire Novogratz Says 2024 Is Pivotal for Bitcoin Mining Industry

In a recent social media post, cryptocurrency mogul Mike Novogratz stated that 2024 is a “pivotal” year for Bitcoin mining.

He has stated that the industry managed to display “incredible resilience” through economic lows.

Novogratz shared a recent Galaxy Digital report, which highlights the key cryptocurrency mining trends of this year.

The integration of cryptocurrency mining with artificial intelligence (AI) and high-performance computing (HPC) has emerged as one of the key developments of the year.

“The integration of AI/HPC with mining is reshaping the landscape, creating new opportunities, and emphasizing the need for power access,” Novogratz said in a social media post.

A new hashrate target

Galaxy Digital has revised its year-end hashrate target, increasing it to 775 EH. The firm believes that public miners will be able to control up to 30% of the network’s hashrate.

It expects the mix of mining machines to become substantially more efficient. However, there is still a lot of uncertainty surrounding the deployment of these machines.

For Bitcoin’s hashrate to show healthy growth, the price of Bitcoin has to remain in the $65,000-$70,000 range. Otherwise, mining might become economically unsustainable.

Notably, Bitcoin mining difficulty experienced a significant drop, plunging below 80 T earlier this July for the first time since the last halving event.

More capital

In the first quarter of the year, Bitcoin mining companies secured a record-breaking amount of equity capital.

The capital was necessary in order to build cash buffers and improve the efficiency of equipment.

Galaxy Digital has predicted that significant capital-raising activities would continue in the second part of the year.