Old Bitcoin mining rigs risk ‘shutdown’ after BTC price slips under $24K

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Older Bitcoin (BTC) mining rigs are discovering it tough to generate constructive revenues in the course of 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 unfavorable zone after Bitcoin’s fall beneath $24,000 this June 13, knowledge fetched by F2Pool exhibits. These machines embrace Antminer S11 and AvalonMiner 921, which at the moment are near their “shutdown worth.”

Notably, Bitmain’s Antminer S11 provides 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) based mostly on the worldwide common electrical energy price. Consequently, it might devour round $4.5 price of energy daily versus the roughly $2 earnings in the identical interval, according to knowledge 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.

General, 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, according to knowledge from CoinWarz.

Bitcoin hashrate knowledge in final 12 months. Supply: CoinWarz

This implies that miners are limiting their BTC production capacity by theoretically shutting down unprofitable mining rigs and should proceed within the coming weeks if Bitcoin fails to recuperate above $25,000 and/or the mining difficulty adjusts

Bitcoin mining shares endure

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

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

BTC/USD each day worth 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 Belongings Mining ETF (DAM), which opened for business in early March 2022, had misplaced 63% of its worth as of June 10, measured from its document excessive of $46.05. It appeared poised to open June 13 decrease, per Nasdaq’s pre-market knowledge.

VanEck Digital Asset Mining ETF each 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 house owners would be capable of climate the bearish Bitcoin market.

Associated: Crypto winter survival guide: Community shares game plan for the bear market

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That features the newly-launched iPollo’s V1, which returns a each day earnings of round $62 in opposition to its $9 energy consumption in the identical interval, and machines from the Antminer’s S-series, which generate each 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 grow to be unprofitable when BTC’s worth drop to $22,000, in line with knowledge supplied by Bitdeer.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you need to conduct your personal analysis when making a call.