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Tuesday, January 31, 2023
HomeCoinsBitcoinAnalysis: The Antminer profitability disaster

Analysis: The Antminer profitability disaster

Bitcoin’s fall from its all-time excessive to a low of $15,700 has been one of the crucial dominating narratives this yr. Bitcoin misplaced 75% of its worth since Nov. 10, 2020, and over 65% because the starting of the yr.

Nonetheless, a way more outstanding story than Bitcoin’s volatility is the divergence between its value and its hash fee.

Regardless of shedding three-quarters of its worth in a yr, Bitcoin’s hash fee reached its all-time excessive of 271.8 EH/s. This divergence between the hash fee and the value is a singular prevalence that hasn’t occurred in any of the earlier bear markets.

btc price hash rate
The divergence between Bitcoin’s value and its hash fee in 2022 (Supply: Blockchain.com)

The skyrocketing hash fee turns into a fair larger outlier when evaluating it to miner revenues. CryptoSlate beforehand analyzed miner income and located that earnings proceed to lower even for the biggest and most effective mining operations.

CryptoSlate’s evaluation of two standard Bitmain miners paints a bleak image of the mining trade. Wanting on the Antminer S9 and Antminer S17 exhibits that machines are battling profitability.

Launched in 2017, the Antminer S9 remained worthwhile all through years of market volatility. Nonetheless, as the worldwide hash fee started to develop in 2020, the S9 noticed its profitability fall till it lastly grew to become unprofitable in Could 2022, when virtually all machines have been faraway from the community.

antminer profitability
Mining profitability for varied Antminers from 2010 to 2022 (Supply: Glassnode)

With an all-in-sustaining value of round $0.05/kWh, Bitcoin’s value would wish to surpass $19,000 for the Antminer S9 to grow to be worthwhile once more.

antminer s9 mining profitability
Mining profitability for the Antminer S9 in 2022 (Supply: Glassnode)

The Antminer S17 remains to be worthwhile. Launched in 2019 as a extra highly effective iteration of the S9, the S17 produced a most hash fee of 56 TH/s. Bitcoin’s present value and rising hash fee put the profitability of the S17 at simply $36 per day. This slim revenue has been lowering virtually day by day and is predicted to drop even additional within the coming weeks.

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The S17 has been battling profitability all year long. The Terra collapse in June 2022 made the S17 unprofitable for the primary time ever, as Bitcoin dropped effectively beneath $16,000 wiping out billions from the market.

antminer mining profitability
Each day earnings of varied Antminers in 2022 (Supply: Glassnode)

The continuing market volatility, mixed with the ever-expanding hash fee, is at the moment placing the profitability of the S17 into query. Wanting on the profitability chart for the S17 exhibits that the machine is experiencing a development much like the S9.

Barely breaking even, the S17 would grow to be unprofitable if Bitcoin have been to fall below $15,500. Crossing the $15,500 might push miners to unplug hundreds of S17s.

antminer s17 mining profitability
Mining profitability for the Antminer S17 in 2022 (Supply: Glassnode)

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