Arcane Research: Bitcoin Mining Profit Drops to 2020 Levels

Cash flow from Bitcoin mining has fallen by 80% from its peak in November 2021 - to levelstwo years ago. Analysts at Arcane Research drew attention to this.

Experts noted that the ASIC miner of the latestgeneration Antminer S19 brings about $13,000 per BTC mined at a cost of electricity of $40 per MWh. Outdated Antminer S9 at the current price of cryptocurrencies work at a loss.

Public mining companies generally have access to lower energy tariffs. In addition, their equipment fleet consists of highly efficient devices, analysts noted. 

Despite this, in May, miners sold 100% of the bitcoins mined in a month. Since the beginning of the year, they have been selling from 25% to 40% of the generated cryptocurrency.

According to Arcane Research, pressurethe profitability of mining, in addition to the price drop, was affected by the increase in the bitcoin hashrate and, accordingly, the complexity. Computing power has increased amid significant investment in new hardware.

On June 11th, the hash rate (smoothed by the 7-day moving average) peaked close to 231 EH/s, according to Glassnode. By June 21, the rate dropped sharply to 207 EH/s.

Data: Glassnode.

The drop in network capacity by 10% in a few days could be caused by the disconnection of devices that have ceased to be profitable.

In May, the income of miners of the first cryptocurrency decreased by 22% compared to April, to $906 million.

Recall that Arcane Research analysts allowed a further decline in the price of bitcoin to $10,350.

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