With the Bitcoin (BTC) price falling, the total revenue miners earn from transaction fees. And mining rewards fell to a one-year low of nearly $15 million on July 4. However, the price of graphics cards or GPUs also dropped. To help miners offset operating costs amid an ongoing bear market
Bitcoin mining revenue has fallen 79.6% in nine months since hitting a record high of $74.4 million on Oct. 25, 2021. Additionally, global chip shortages and the coronavirus pandemic As a result, the price of video cards has increased dramatically — affecting miners profits as well.
As graphics card manufacturers re-enter the world, the price of GPUs has dropped dramatically. with some cardssellat a lower price than the MSRP, in May of the same year, the GPU price reduceThis is due to oversupply that exceeds market demand. Additionally, the recent influx of second-hand GPUs has forced secondary market sellers to cut exorbitant prices on used graphics cards.
Many Bitcoin miners, though, are still well positioned to survive the prolonged bear market. because despite the lower income But it still maintains the operating costs of the mining plant. For example, Argo, CleanSpark, Stronghold, Marathon and Roit some of the miners still maintain a solid mining income to operating expense ratio.
Moreover, the dramatic drop in GPU prices has opened up a small opportunity for smaller miners to provide more powerful and efficient mining equipment. Coupled with the need for a lower hash rate of 203.6 exa hashes per second, miners now require lower processing power to successfully mine blocks on the Bitcoin blockchain.
Although mining revenue has dropped significantly, Marathon Digital Holdings revealed, “For reference, in Q1 2022, our cost to produce Bitcoin is approximately $6,200. pay for energy Therefore, we are not subject to changes in the energy market.”
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