Older Bitcoin (BTC) mining rigs are discovering it troublesome to generate constructive revenues throughout the ongoing crypto market decline.

75% drop in Bitcoin mining profitability

The profitability of many Software Particular Built-in Circuit (ASIC) machines has dropped into the unfavourable zone after Bitcoin’s fall beneath $24,000 this June 13, knowledge fetched by F2Pool exhibits. These machines embody Antminer S11 and AvalonMiner 921, which are actually near their “shutdown value.”

In your data, we publish the most recent checklist of the Shutdown Worth beneath which crypto mining machines on this chart must be shut down for lack of profitability. pic.twitter.com/qxGtLjJI9l

— Bitdeer (@BitdeerOfficial) June 13, 2022

Notably, Bitmain’s Antminer S11 affords a most hash fee 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) primarily based on the worldwide common electrical energy value. Consequently, it will eat round $4.5 price of energy day-after-day versus the roughly $2 revenue in the identical interval, according to knowledge gathered by ASIC Miner Worth.

Equally, the price of working Canaan’sAvalonMiner 921 comesto be round $5 per day in comparison with its revenue of over $2 in the identical interval.

General, Bitcoin miners’ earnings have dropped from $0.412 perTH/s/day in October 2021 to $0.11per TH/s/day in June 2022, in response to the “Bitcoin Hashprice Index” — a 75% decline in eight months.

The losses coincided with a pointy decline within the Bitcoin mining hash fee 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.

This means that miners are limiting their BTC manufacturing capability 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 issue adjusts.

Bitcoin mining shares undergo

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

BTC’s price reached as low as $23,707 (data from Coinbase) versus its November 2021’s peak of $69,000. The losses came due to the concerns about rising U.S. interest rates.

Bitcoin mining businesses, which remain at the forefront of minting and supplying new BTC tokens, have suffered the brunt of falling prices. For example, Canaan’s stock dropped by more than 90% after topping at $39.10 per share in March 2021.

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

New gen BTC mining rigs still in profit

On a brighter note, some mainstream mining machines still generate profits for miners, hinting their owners would be able to weather the bearish Bitcoin market.

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

That includes the newly-launched iPollo’s V1, which returns a day by day revenue of round $62 towards its $9 energy consumption in the identical interval, and machines from the Antminer’s S-series, which generate day by day revenues of $4.75–$18, regardless of Bitcoin’s below-$25,000 costs.

In your data, we publish the most recent checklist of the Shutdown Worth beneath which crypto mining machines on this chart must be shut down for lack of profitability. pic.twitter.com/qxGtLjJI9l

— Bitdeer (@BitdeerOfficial) June 13, 2022

Nonetheless, some worthwhile machines are close to their shutdown thresholds, together with Antminer’s S17+ (73T). It may change into unprofitable when BTC’s value drop to $22,000, in response to knowledge supplied by Bitdeer.

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