Old Bitcoin mines risk "closing" after BTC drops below $ 24K

Old Bitcoin mines risk “closing” after BTC drops below $ 24K – Mail Bonus

Older Bitcoin (BTC) mining companies are having a hard time generating positive revenue during the continuing decline of the cryptocurrency market.

75% reduction in Bitcoin mining profitability

Profitability of many Application Specific Integrated Circuit (ASIC) machines has fallen into the negative zone after Bitcoin fell below $ 24,000 on June 13, according to data from F2Pool. These machines include the Antminer S11 and AvalonMiner 921, which are now close to their “closing price”.

Interestingly, Bitmain’s Antminer S11 offers a maximum hash rate of 20.5 Terra-hash per second (TH / s) for power consumption of 1,530 watts.

The cost of running Antiminer 211 is 0.13 kilowatts per hour (KW / h) compared to the global average electricity cost. As a result, it would spend about $ 4.5 worth of energy each day compared to approx. $ 2 revenue over the same period, according to data collected by ASIC Miner Value.

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

Similarly, the cost of running Canaan’s AvalonMiner 921 is about $ 5 per day, compared to the revenue over $ 2 over the same period.

Overall, Bitcoin mining revenue fell from $ 0.412 per TH / s / day in October 2021 to $ 0.11 per TH / s / day in June 2022, according to the Bitcoin Hashprice Index – a 75% decrease in eight months.

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

The loss coincided with a sharp drop in Bitcoin, the hash rate in the last seven days – from a historic high of 239.15 exa-hash per second (EH / s) on June 6 to 189.72 EH / s on June 13, according to to data from CoinWarz.

Bitcoin hashrate data over the last 12 months. Source: CoinWarz

This suggests that miners are limiting their BTC production capacity by theoretically shutting down unprofitable mining equipment and could continue in the coming weeks if Bitcoin fails to recover above $ 25,000 and / or mining difficulties adjust.

Bitcoin mining stocks are suffering

On June 13, the Bitcoin price reached its lowest level since December 2020, after brutal sales in the cryptocurrency market.

BTC prices reached up to $ 23,707 (data from Coinbase) against a peak in November 2021 of $ 69,000. The loss was due to concerns about rising interest rates in the United States.

BTC / USD daily price. Source: TradingView

Bitcoin mining companies, which remain at the forefront of coinage and provide new BTC tokens, have been hit by falling prices. For example, Canaan’s shares fell more than 90% after rising to $ 39.10 a share in March 2021.

Similarly, VanEck’s Digital Assets Mining ETF (DAM), which opened for trading in early March 2022, had lost 63% of its value as of June 10, from its record high of $ 46.05. It looked to open lower on June 13, according to Nasdaq’s pre-marketing data.

Daily Chart VanEck Digital Asset Mining ETF. Source: TradingView

New BTC mining rigs are still in profit

On a brighter note, some general-purpose mining machines are still generating profits for miners, indicating that their owners would be able to withstand the bearish Bitcoin market.

Similar: Guidance Winter Cryptoculture Guide: Bear Market Stock Market Game Plan

It includes the new iPollo’s V1, which generates daily revenue of about $ 62 against its $ 9 power consumption over the same period, and machines from Antminer’s S-series, which generate daily revenue of $ 4.75- $ 18 despite the price of Bitcoin below $ 25,000. .

Nevertheless, some profitable machines are close to the closing limit, including Antminer’s S17 + (73T). It could become unprofitable when the price of BTC drops to $ 22,000, according to information from Bitdeer.

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