Bitcoin

Old Bitcoin mining rigs risk &x27shutdown&x27 after BTC price slips under 24K

older bitcoin (btc) mining rigs are finding it difficult to generate positive income during the ongoing decline of the cryptocurrency market.

75% drop in bitcoin mining profitability

The profitability of many application-specific integrated circuit (asic) machines has fallen into the negative zone after bitcoin dipped below $24,000 on June 13, data compiled by f2pool shows. those machines include antminer s11 and avalonminer 921, which are now close to their “closing price”.

Reading: New closes on bitcoin mining

For your information, we publish the most recent list of the closing price below which the crypto mining machines on this chart should be closed due to lack of profitability. pic.twitter.com/qxgtljji9l

In particular, bitmain’s antminer s11 offers a maximum hash rate of 20.5 terra-hash per second (th/s) for a power consumption of 1530 watts.

The cost to operate a 211 antiminer is 0.13 kilowatt hours (kw/h) based on the global average cost of electricity. as a result, it would consume about $4.5 worth of energy every day versus revenue of about $2 in the same period, according to data compiled by asic miner value.

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

Similarly, the cost of running Canaan’s AvalonMiner 921 comes to be around $5 per day compared to its income of over $2 in the same period.

See also: Should I Sell My Bitcoin? Here&x27s How to Decide

Overall, bitcoin miner earnings fell from $0.412 per millisecond/day in October 2021 to $0.11 per millisecond/day in June 2022, according to the “Bitcoin Price Index”. bitcoin hash,” a 75% decline in eight months.

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

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

The losses coincided with a sharp decline in the Bitcoin mining hash rate in the last seven days — from an all-time high of 239.15 exa-hash per second (EH/s) on June 6 to 189.72 EH/s on June 13, according to data from CoinWarz.

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

Bitcoin hashrate data in last 12 months. Source: CoinWarz

This suggests that miners are limiting their BTC production capacity by theoretically shutting down unprofitable mining rigs and may continue in the coming weeks if Bitcoin fails to recover above $25,000 and/or the mining difficulty adjusts.

bitcoin mining stocks suffer

On June 13, the price of bitcoin reached its lowest levels since December 2020 following a brutal sell-off in the cryptocurrency market.

btc price hit a low of $23,707 (coinbase data) vs. november 2021 high of $69,000. losses were due to concerns over u.s. surge. interest rates.

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

BTC/USD daily price chart. Source: TradingView

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.

See also: Tucker Carlson Explains Bitcoins Value Proposition In U.S. National TV | Bitcoinist.com

Similarly, Vaneck’s digital asset mining ETF (dam), which opened in early March 2022, had lost 63% of its value as of June 10, measured from its all-time high of $46.05. looked set to open June 13 lower, according to nasdaq pre-market data.

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

VanEck Digital Asset Mining ETF daily chart. Source: TradingView

New gen BTC mining rigs still in profit

On a brighter note, some conventional miners are still turning a profit for miners, suggesting their owners could weather the bitcoin bear market.

Related: Crypto Winter Survival Guide: Community Shares Game Plan for Bear Market

which includes recently released ipollo’s v1, which generates a daily income of around $62 against its energy consumption of $9 in the same period, and antminer’s s-series machines, which generate daily income of $4.75-$18, despite bitcoin prices below $25,000.

For your information, we publish the most recent list of the closing price below which the crypto mining machines on this chart should be closed due to lack of profitability. pic.twitter.com/qxgtljji9l

However, some profitable machines are close to their shutdown thresholds, including antminer’s s17+ (73t). could become unprofitable when btc price drops to $22,000, according to data provided by bitdeer.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of cointelegraph.com. Every investment and trading move involves risk, you need to do your own research when making a decision.

See also: The Best Crypto Casinos Canada: Top CA Casino Sites that Accept Bitcoin in 2022 – The Denver Post

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button