Older Bitcoin (BTC) mining rigs are discovering it tough to generate optimistic revenues through the ongoing crypto market decline.

75% drop in Bitcoin mining profitability

The profitability of many Utility Particular Built-in Circuit (ASIC) machines has dropped into the destructive zone after Bitcoin’s fall beneath $24,000 this June 13, knowledge fetched by F2Pool exhibits. These machines embody Antminer S11 and AvalonMiner 921, which are actually near their “shutdown value.”

Notably, Bitmain’s Antminer S11 affords a most hash price of 20.5 Terra-hash per second (TH/s) for an influence consumption of 1,530 watts.

The price of working an Antiminer 211 is 0.13 kilowatts per hour (KW/h) primarily based on the worldwide common electrical energy value. Because of this, it might devour round $4.5 value of energy every single day versus the roughly $2 earnings in the identical interval, in line with data gathered by ASIC Miner Worth.

The profitability of Antminer S11 as of June 13, 2022. Supply: Bitmain

Equally, the price of working Canaan’s AvalonMiner 921 comes to be round $5 per day in comparison with its earnings of over $2 in the identical interval.

Total, Bitcoin miners’ earnings have dropped from $0.412 per TH/s/day in October 2021 to $0.11 per TH/s/day in June 2022, in line with the “Bitcoin Hashprice Index” — a 75% decline in eight months. 

Bitcoin Hashprice Index one-year chart. Supply: Hashrate Index

The losses coincided with a pointy decline within the Bitcoin mining hash price within the final seven days — from an all-time excessive of 239.15 exa-hash per second (EH/s) on June 6 to 189.72 EH/s on June 13, in line with knowledge from CoinWarz.

Bitcoin hashrate knowledge in final 12 months. Supply: CoinWarz

This means that miners are limiting their BTC manufacturing capability by theoretically shutting down unprofitable mining rigs and should proceed within the coming weeks if Bitcoin fails to get well above $25,000 and/or the mining problem adjusts. 

Bitcoin mining shares endure

On June 13, Bitcoin value hit its lowest ranges since December 2020, following a brutal crypto market selloff.

BTC’s value reached as little as $23,707 (knowledge from Coinbase) versus its November 2021’s peak of $69,000. The losses got here as a result of considerations about rising U.S. rates of interest.

BTC/USD every day value chart. Supply: TradingView

Bitcoin mining companies, which stay on the forefront of minting and supplying new BTC tokens, have suffered the brunt of falling costs. For instance, Canaan’s inventory dropped by greater than 90% after topping at $39.10 per share in March 2021.

Equally, VanEck’s Digital Property Mining ETF (DAM), which opened for enterprise in early March 2022, had misplaced 63% of its worth as of June 10, measured from its document excessive of $46.05. It regarded poised to open June 13 decrease, per Nasdaq’s pre-market knowledge.

VanEck Digital Asset Mining ETF every day chart. Supply: TradingView

New gen BTC mining rigs nonetheless in revenue

On a brighter be aware, some mainstream mining machines nonetheless generate income for miners, hinting their homeowners would be capable of climate the bearish Bitcoin market.

Associated: Crypto winter survival information: Group shares recreation plan for the bear market

That features the newly-launched iPollo’s V1, which returns a every day earnings of round $62 towards its $9 energy consumption in the identical interval, and machines from the Antminer’s S-series, which generate every day revenues of $4.75-$18 regardless of Bitcoin’s below-$25,000 costs.

Nonetheless, some worthwhile machines are close to their shutdown thresholds, together with Antminer’s S17+ (73T). It may change into unprofitable when BTC’s value drop to $22,000, in line with knowledge supplied by Bitdeer.

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