Home » Price of Bitcoin Falls Below $24,000, Mining Equipment Older Than Five Years May Be “Put Down”

Price of Bitcoin Falls Below $24,000, Mining Equipment Older Than Five Years May Be “Put Down”

by Lisa Zheng
Price of Bitcoin Falls Below $24,000, Mining Equipment Older Than Five Years May Be Put Down

During the current crypto market slump, it is difficult for older Bitcoin mining machines to turn a profit.

Since Bitcoin plummeted below $24,000 on June 13, 2018, as shown by data obtained by F2Pool, the profitability of many Application Specific Integrated Circuit (ASIC) devices has dropped into the negative zone. The “shutdown price” for computers like the Antminer S11 and AvalonMiner 921 is rapidly approaching.

The Antminer S11 from Bitmain is noteworthy because it can achieve a maximum hash rate of 20.5 TH/s while only requiring 1,530 W of power.

Based on the average price of power around the world, operating an Antiminer 211 will cost you 0.13 kilowatt-hours (KWh) per hour. According to the data provided by ASIC Miner Value, this would result in daily electricity costs of about $4.5, compared to an average daily income of about $2.

The same is true for Canaan’s AvalonMiner 921, which has daily operating costs of about $5 and daily earnings of about $2.

From October 2021 to June 2022, the “Bitcoin Hashprice Index” shows a 75% collapse in the earnings of Bitcoin miners, from $0.412 per TH/s/day to $0.11 per TH/s/day.

Coinciding with the losses was a precipitous drop in the Bitcoin mining hash rate during the previous week, as measured by data from CoinWarz, from a record high of 239.15 exa-hash per second (EH/s) on June 6 to 189.72 EH/s on June 13.

If Bitcoin fails to recover over $25,000 and/or the mining difficulty adjusts, this trend may continue in the next few weeks as miners limit their BTC production capacity by ostensibly shutting down unproductive mining rigs.

On June 13, when the crypto market crashed hard, Bitcoin hit its lowest level since December 2020.

The all-time high for Bitcoin was $69,000 in November 2021, while its all-time low was $23,707 (Coinbase statistics). Concerns over a possible increase in interest rates in the United States led to the declines.

The recent price drops have been especially hard on businesses that mine Bitcoin, which is still the main way new BTC coins are made and distributed. In March 2021, Canaan’s stock peaked at $39.10 per share before plunging by more than 90%.

Similarly, as of June 10 (measured from the record high of $46.05), VanEck’s Digital Assets Mining ETF (DAM), which began trading in early March 2022, had lost 63% of its value. According to Nasdaq’s pre-market data, it was expected to open on June 13.

Despite the downward trend in the Bitcoin market, miners who use conventional mining devices are still making money.

Machines from the Antminer S-series generate daily profits of $4.75 to $18 despite Bitcoin’s below-$25,000 values, and the recently released iPollo V1 generates roughly $62 in daily income against its $9 power usage in the same period.

While this is true, some profitable machines, like Antminer’s S17+, are getting close to their shutdown criteria (73T). Bitdeer estimates that if the price of bitcoin drops to $22,000, the business will no longer be profitable.

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