Crypto Mining News Daily

Sunday, July 14, 2024
HomeNewsBitcoin's Hashprice Plunges to Record Low, Leaving Mining Equipment Unprofitable at Average...

Bitcoin’s Hashprice Plunges to Record Low, Leaving Mining Equipment Unprofitable at Average Energy Rate


Bitcoin’s hashprice has continued to decline, despite a negative difficulty adjustment on Friday, rendering a wide range of mining equipment unprofitable at an average energy rate of $70/MWh. The hashprice, which measures the revenue generated per unit of hashing power, set a record low on Thursday and continued to fall on Friday, reaching $43.28/PH/s.

Although the hashprice saw a moderate increase following the difficulty adjustment, it still remained under $45/PH/s. If this bearish hashprice level persists, the network may experience another wave of hashrate capitulation in the coming weeks.

The decline in hashprice has significant implications for mining operators. Bitmain’s Antminer S19 Pro, the dominant model since the 2020 halving cycle, incurs a daily hashcost of $43.2/PH/s at an energy rate of $60/MWh, or $46.8/PH/s at $65/MWh. This means that operators of S19 Pros could be on the brink of running at a gross loss unless their power costs are well below $60/MWh.

Even more efficient models like the Antminer S19 XP could be at risk, as they require higher energy costs to remain profitable. For example, Bitmain’s agreement with Core Scientific to host 4.1 EH/s of S19 XPs at Core’s facility for a hosting fee of $74.5/MWh means that an S19 XP’s hashcost would be about $39.3/PH/s. This highlights the challenges faced by mining operators in the current market.

The decline in hashprice is a result of a combination of factors, including the broader market sell-off and the increasing competition in the mining industry. As the hashprice continues to decline, mining operators may be forced to reduce their hashrate or shut down their operations altogether. The impact on the network’s security and decentralization remains to be seen.

Source: TheMinerMag


Most Popular

Learn How to Mine Crypto

Join our mailing list and receive a free copy of Crypto Mining 101, our detailed guide on how crypto mining works, must have tools to get started, and how to be successful.

Note: We’ll never sell, trade, or abuse your information, and it’s simple to opt out! Read our Privacy Policy here.