Bitcoin mining cash flow is down 80% from its peak in November 2021 to levels two years ago. Arcane Research analysts drew attention to this.
Why are the #bitcoin miners forced to sell their precious bitcoin?
— Jaran Mellerud (@JMellerud) June 22, 2022
Experts noted that the latest generation ASIC miner Antminer S19 brings in about $13,000 per BTC mined at a cost of electricity of $40 per MWh. The outdated Antminer S9 at the current price of cryptocurrencies operate at a loss.
Public mining companies generally have access to lower energy tariffs. In addition, their equipment fleet consists of highly efficient devices, analysts noted.
Despite this, in May, miners sold 100% of the bitcoins mined in a month. Since the beginning of the year, they have been selling from 25% to 40% of the generated cryptocurrency.
According to Arcane Research experts, the pressure on the profitability of mining, in addition to falling prices, was exerted by an increase in the bitcoin hashrate and, accordingly, the complexity. Computing power has increased on the back of significant investment in new hardware.
On June 11, the hashrate (smoothed 7-day moving average) peaked at close to 231 EH/s, according to Glassnode. By June 21st, the rate dropped sharply to 207 EH/s.
The drop in network capacity by 10% in a few days could be caused by the disconnection of devices that ceased to generate profit.
In May, the income of miners of the first cryptocurrency decreased by 22% compared to April, to $906 million.
Recall that Arcane Research analysts allowed a further decline in the price of bitcoin to $10,350.
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