Old Bitcoin mining rigs risk ‘shutdown’ after BTC price slips under $24K

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Older Bitcoin (BTC) mining rigs are discovering it troublesome to generate optimistic revenues through 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 damaging zone after Bitcoin’s fall under $24,000 this June 13, information fetched by F2Pool reveals. These machines embody Antminer S11 and AvalonMiner 921, which are actually near their “shutdown worth.”

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Notably, Bitmain’s Antminer S11 provides a most hash price 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. In consequence, it could devour round $4.5 price of energy day by day versus the roughly $2 revenue in the identical interval, based on data gathered by ASIC Miner Worth.

The profitability of Antminer S11 as of June 13, 2022. Supply: Bitmain

Equally, the price of working Canaan’s AvalonMiner 921 comes to 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 per TH/s/day in October 2021 to $0.11 per TH/s/day in June 2022, based on the “Bitcoin Hashprice Index” — a 75% decline in eight months. 

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

The losses coincided with a pointy decline within the Bitcoin mining hash price 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, based on information from CoinWarz.

Bitcoin hashrate information in final 12 months. Supply: CoinWarz

This means that miners are limiting their BTC production capacity by theoretically shutting down unprofitable mining rigs and will proceed within the coming weeks if Bitcoin fails to get well above $25,000 and/or the mining difficulty adjusts

Bitcoin mining shares undergo

On June 13, Bitcoin worth hit its lowest ranges since December 2020, following a brutal crypto market selloff.

BTC’s worth reached as little as $23,707 (information from Coinbase) versus its November 2021’s peak of $69,000. The losses got here because of the considerations about rising U.S. interest rates.

BTC/USD day by day worth chart. Supply: TradingView

Bitcoin mining companies, which stay on the forefront of minting and supplying new BTC tokens, have suffered the brunt of falling costs. For instance, Canaan’s inventory dropped by greater than 90% after topping at $39.10 per share in March 2021.

Equally, VanEck’s Digital Property Mining ETF (DAM), which opened for enterprise in early March 2022, had misplaced 63% of its worth as of June 10, measured from its document excessive of $46.05. It seemed poised to open June 13 decrease, per Nasdaq’s pre-market information.

VanEck Digital Asset Mining ETF day by day chart. Supply: TradingView

New gen BTC mining rigs nonetheless in revenue

On a brighter notice, some mainstream mining machines nonetheless generate earnings for miners, hinting their house owners would have the ability to climate the bearish Bitcoin market.

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

That features 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.

Nonetheless, some worthwhile machines are close to their shutdown thresholds, together with Antminer’s S17+ (73T). It may grow to be unprofitable when BTC’s worth drop to $22,000, based on information offered by Bitdeer.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it is best to conduct your individual analysis when making a choice.