Experts pointed to very low profitability of Bitcoin mining

In the back to fall Bitcoin prices below $50,000 hashprice dropped to a low of $36 per PH/s per day. BlocksBridge Consulting took this into account.

📉 Record low profits pushing miners to the edge

Hard times like # bitcoin mining costs increased by $60k in July.

Read more in #MinerWeekly for details and estimate $ SEA, $ RIOTand $ CORZ hashcosts in Q2:https://t.co/tHarpstOiL

– BlocksBridge Consulting (@BlocksBridge_) August 8, 2024

Even after revival values ​​of the first cryptocurrency, the indicator is still at levels slightly above $ 40 per PH / s, which is lower than the lowest level recorded in early July.

Analysts noted that during the previous recalculation, the mining problem was updated historical high at 90.67 T. Since the seven-day moving average of Bitcoin hashrate has been going down since then, we can count on a decrease in difficulty during the next settlement, experts predict.

In the current environment, mining is still a “challenging environment”, especially for those who do not have access to competitive electricity prices, they stressed.

For example, BlocksBridge announced Bitmain’s position in Antminer S19XP installations with a hashrate of 4.1 EH/s on Core Scientific premises. The hosting target is $0.0745/kWh, which means a hash price of $39 per PH/s per day. This roughly corresponds to a break-even point of $40 per PH/s.

According to analysts, it is unlikely that even independent mining under current conditions will generate a net profit before depreciation and taxes. According to the financial statements of three of the four largest public companies in the sector – MARA (Marathon Digital), Core Scientific and Riot, the cost of mining digital gold in July exceeded $ 60,000 per coin.

MARA and Riot had previously moved to a policy of collecting Bitcoin resources, including buy cryptocurrency. Core sells 100% of mined coins to cover operating costs.

Both strategies have their advantages, analysts say. The first two companies can ignore short-term price movements of the digital currency, counting on future growth. Since the beginning of the year, they have collectively raised more than $1.5 billion through placements. However, their capital expenditure during this period exceeded $1 billion.

Core may not receive a net profit from selling bitcoins, but the money allows it to finance its activities and reduce its debt burden, BlocksBridge experts emphasized. In addition, the company is actively increasing its capacity in the field of HPC and internal artificial intelligence $3.5 billion deal with CoreWeave.

We will remember that in July, Bernstein analysts noticedthat miners are attractive partners for building AI data centers due to access to power supplies and operational capabilities.

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