Bitcoin’s 5% Drop in Value Puts Pressure on BTC Mining Operations and Older ASIC Rigs

Over the past seven days, the price of Bitcoin has dropped 4.8% from a high of $ 9,700 on June 24 to a low of $ 8,965 on June 27. Since then, the price has risen and the price per bitcoin is again above the $ 9,000 zone, but much lower than before. The lower price has affected the profits of miners looking for blocks in the network. Since losing 50% of the block reward on May 11th, miners with bitcoin prices at these levels have had difficulty making profits.

Mining Bitcoin is an extremely competitive industry and after that BTC On May 11, 2020, the reward halved. It was much more difficult to mine the rare digital currency. At the time of publication the price of an individual BTC has ranged between $ 9,050 and $ 9,250 in the past few days.

This has given the crypto asset an overall market valuation of between $ 165 billion and $ 170 billion over the week. The price is over 4.8% lower than on June 24, when BTC Prices hovered around $ 9,700 last Wednesday.

Of course the price is from BTC Miners and tens of thousands of ASIC mining equipment located in camps around the world are directly affected. An example of this trend is that the Bitmain Antminer S19 Pro (110TH / s) is the only profitable machine when a mining company pays $ 0.12 per kilowatt hour (kWh).

With these electricity costs, the Antminer S19 Pro would only earn $ 0.97 a day, while a number of other miners would mine at a loss. Now we all know that in China and other regions around the world, these companies pay much less than $ 0.12 per kWh.

Bitcoin's 5% loss in value puts pressure on BTC mining operations and older ASIC plants
Top 15 SHA256 ASIC mining equipment with an electrical rate of $ 0.12 per kWh.

At the present time BTC Exchange rates and at a much lower rate of $ 0.04 per kWh, a much larger number of SHA256 miners would be profitable. At $ 0.04 per kWh in total 49 SHA256 ASIC mining equipment are profitable at today's spot market price.

The five largest mining facilities that generate the greatest profit at an electrical rate of $ 0.04 per kWh include the Bitmain Antminer S19 Pro (110TH / s), the Bitmain Antminer S19 (95TH / s), the MicroBT Whatsminer M30S ( 86TH / s) and the Bitmain Antminer T19 (84TH / s) and the Bitmain Antminer S17 + (73TH / s).

The machines that make the worst profits at $ 0.04 per kWh and BTCThe current exchange rate includes miners such as the GMO miner B2 (24TH / s), Innosilicon T2 Turbo (24TH / s), Bitmain Antminer S9 SE (16TH / s), Bitfily Snow Panther B1 + (25.5TH / s) and the Canaan AvalonMiner 921 (20th / s).

Bitcoin's 5% loss in value puts pressure on BTC mining operations and older ASIC plants
Top 15 SHA256 ASIC mining equipment with an electrical rate of $ 0.04 per kWh.

Miners who are mining BTC Bitfily Snow Panther B1 (16TH / s), Aladdin Miner (16TH / s) and Ebang Ebit E10 (18TH / s) are included with a loss of $ 0.04 per kWh. ASIC mining equipment that offers Terahash below the 20 / s level is unlikely to make a profit unless it pays less than $ 0.04 per kWh. Many of these older generation mining devices would have to pay around $ 0.01 per kWh or purchase electricity for free.

Just like the blockchain analytics provider Tradeblock wrote in a report in February, the company estimated the cost of mine BTC should be over $ 12,500 after halving.

"The (data) indicates that miners are likely to expect Bitcoin's price to rise to a higher level (over $ 12,000 to $ 15,000 a year) BTC) around the halving so they can continue to make profits, ”Tradeblock wrote at the time. "Or they will likely try to cut resources after halving, which will result in a decrease in the hash rate as profitability drops," the company added.

The price of BTC The $ 10,000 zone must be maintained for a very long time, and each time it has been pushed back under the psychological region. If the price of BTC in fact jumps back to over $ 12,000-15,000 each BTC Of course, as suggested in Tradeblock's report, miners would do much better.

At a price of $ 12,000 to $ 15,000 per Bitcoin, older generation miners who process hash power below 20 terahash per second would likely be turned on again immediately. It is likely that many older generation miners with low terahash performance will be waiting for it.

What do you think about the profitability of ASIC mining rigs at today's exchange rates? Let us know what you think in the comments section below.

Tags in this story
Antminer, Bitcoin (BTC), Bitcoin Mining, Bitfily, Bitmain, BTC, Kanaan, Ebang, Innosilicon, Microbt, Mining, Mining Profits, Mining Facilities, Profits, S19, S19 Pro, SHA256, Snow Panther

Image credits: Shutterstock, Pixabay, Wiki Commons, Asicminervalue.com

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