Research study: The Antminer success crisis

Bitcoin’s fall from its all-time high to a low of $15,700 has actually been among the most controling stories this year. Bitcoin lost 75% of its worth because Nov. 10, 2020, and over 65% given that the start of the year.

A much more amazing story than Bitcoin’s volatility is the divergence in between its cost and its hash rate.

Regardless of losing three-quarters of its worth in a year, Bitcoin’s hash rate reached its all-time high of 271.8 EH/s. This divergence in between the hash rate and the rate is a special incident that hasn’t taken place in any of the previous bearish market.

The escalating hash rate ends up being an even larger outlier when comparing it to miner incomes. CryptoSlate formerly evaluated miner earnings and discovered that revenues continue to reduce even for the biggest and most effective mining operations.

CryptoSlate’s analysis of 2 popular Bitmain miners paints a bleak photo of the mining market. Taking a look at the Antminer S9 and Antminer S17 reveals that makers are battling with success.

Introduced in 2017, the Antminer S9 stayed successful throughout years of market volatility. As the worldwide hash rate started to broaden in 2020, the S9 saw its success fall up until it lastly ended up being unprofitable in May 2022, when practically all makers were eliminated from the network.

With an all-in-sustaining expense of around $0.05/ kWh, Bitcoin’s cost would require to go beyond $19,000 for the Antminer S9 to end up being successful once again.

The Antminer S17 is still lucrative. Introduced in 2019 as a more effective version of the S9, the S17 produced an optimum hash rate of 56 TH/s. Bitcoin’s existing cost and growing hash rate put the success of the S17 at simply $36 each day. This slim revenue has actually been reducing nearly day-to-day and is anticipated to drop even further in the coming weeks.

The S17 has actually been fighting with success throughout the year. The Terra collapse in June 2022 made the S17 unprofitable for the very first time ever, as Bitcoin dropped well listed below $16,000 erasing billions from the marketplace.

The continuous market volatility, integrated with the ever-expanding hash rate, is presently putting the success of the S17 into concern. Taking a look at the success chart for the S17 reveals that the maker is experiencing a pattern comparable to the S9.

Hardly recovering cost, the S17 would end up being unprofitable if Bitcoin were to fall under $15,500. Crossing the $15,500 might press miners to disconnect countless S17s.