The worth of BTC is $24K. Older bitcoin mining rigs danger ‘shutdown’ after falling quick

Older bitcoin (BTC) mining rigs are discovering it troublesome to generate optimistic income throughout the ongoing crypto market downturn.

75% drop in bitcoin mining profitability

Knowledge obtained by F2Pool reveals that the profitability of many Utility Particular Built-in Circuit (ASIC) machines has plunged into adverse territory after bitcoin fell under $24,000 this June 13. These machines embody the Antminer S11 and AvalonMiner 921, which are actually near their “shutdown worth.”

Notably, Bitmain’s Antminer S11 presents a most hash charge of 20.5 tera-hashes per second (TH/s) For an influence consumption of 1,530 watts.

The fee to run an Antminer 211 based mostly on the worldwide common electrical energy price is 0.13 kilowatt-hour (KW/h). Because of this, in keeping with knowledge collected by ASIC Miner Worth, it’s going to eat about $4.5 of electrical energy per day, in comparison with an earnings of about $2 over the identical interval.

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

Equally, the price of operating Canaan’s AvalonMiner 921 is round $5 a day, whereas its income over the identical interval is greater than $2.

Total, the earnings of bitcoin miners fell from $0.412 per TH/s/day in October 2021 to $0.11 per TH/s/day in June 2022, in keeping with the “Bitcoin Hashprice Index” – a 75% drop in eight months.

Bitcoin hashprice index one 12 months chart. Supply: Hashrate Index

The loss coincided with a pointy drop within the bitcoin mining hash charge over the previous seven days – from an all-time excessive of 239.15 exa-hashes per second (EH/s) on June 6 to 189.72 EH/s on June 13. For knowledge from CoinWarz.

Bitcoin hashrate knowledge during the last 12 months. Supply: CoinWarz

This means that miners are limiting their BTC manufacturing capability by shutting down theoretically unprofitable mining tools and will proceed within the coming weeks if bitcoin fails to get better above $25,000 and/or has mining problem. will get adjusted.

bitcoin mining shares endure

bitcoin worth on june 13 After a brutal crypto market sell-off hit its lowest stage since December 2020.

The worth of BTC reached $23,707 (knowledge from Coinbase), in comparison with $69,000 in November 2021. The deficit got here on the again of issues a couple of hike in US rates of interest.

BTC/USD day by day worth chart. Supply: TradingView

Bitcoin mining companies, that are on the forefront of making and supplying new BTC tokens, have suffered the brunt of the value drop. For instance, Canaan’s inventory fell greater than 90% after topping out at $39.10 per share in March 2021.

Equally, VanEck’s Digital Property Mining ETF (DAM), which Opened for buying and selling in early March 2022, it had misplaced 63% of its worth by June 10, measured from a file excessive of $46.05. In accordance with pre-market knowledge from Nasdaq, it was poised to open decrease on June 13.

VanEck Digital Asset Mining ETF Every day Chart. Supply: TradingView

New Technology BTC Mining Tools Nonetheless Worthwhile

On a brighter observe, some mainstream miners nonetheless flip income for miners, indicating that their homeowners will have the ability to climate the bearish bitcoin market.

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This contains the newly-launched iPollo’s V1, which delivered a day by day earnings of about $62 towards its $9 electrical energy consumption over the identical interval, and Antminer’s S-series machines, which price $4.75—regardless of bitcoin down $25,000. Generate day by day income of $18. costs.

Nonetheless, some worthwhile machines are near their shutdown limits, together with Antminer’s S17+ (73T). In accordance with knowledge supplied by Bitdeer, it might develop into unprofitable when the value of BTC drops to $22,000.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer entails danger, so it’s best to do your personal analysis when making a choice.