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

Older Bitcoin (BTC) mining rigs are discovering it tough to generate constructive revenues in the course of 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 unfavourable zone after Bitcoin’s fall beneath $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.”

Notably, Bitmain’s Antminer S11 provides a most hash fee 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) based mostly on the worldwide common electrical energy price. Consequently, it will eat round $4.5 value of energy day-after-day versus the roughly $2 earnings in the identical interval, in accordance with information 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 earnings 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, in accordance with 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 fee 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, in accordance with information from CoinWarz.

Bitcoin hashrate information in final 12 months. Supply: CoinWarz

This implies that miners are limiting their BTC manufacturing capability by theoretically shutting down unprofitable mining rigs and will proceed within the coming weeks if Bitcoin fails to recuperate above $25,000 and/or the mining problem adjusts. 

Bitcoin mining shares endure

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

BTC’s price reached as low as $23,707 (data from Coinbase) versus its November 2021’s peak of $69,000. The losses came due to the concerns about rising U.S. interest rates.

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.

Similarly, VanEck’s Digital Assets Mining ETF (DAM), which opened for business in early March 2022, had lost 63% of its value as of June 10, measured from its record high of $46.05. It looked poised to open June 13 lower, per Nasdaq’s pre-market data.

VanEck Digital Asset Mining ETF daily chart. Source: TradingView

New gen BTC mining rigs still in profit

On a brighter note, some mainstream mining machines still generate profits for miners, hinting their owners would be able to weather the bearish Bitcoin market.

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

That includes the newly-launched iPollo’s V1, which returns a daily income of around $62 against its $9 power consumption in the same period, and machines from the Antminer’s S-series, which generate daily revenues of $4.75–$18, despite Bitcoin’s below-$25,000 prices.

Nonetheless, some worthwhile machines are close to their shutdown thresholds, together with Antminer’s S17+ (73T). It may develop into unprofitable when BTC’s worth drop to $22,000, in accordance with information supplied by Bitdeer.

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