April 17, 2021

Bitcoin miners skim the cream: even eight-year-old ASICs are profitable

The excitement around cryptocurrency mining continues due to high margin profitability. Due to growth Even older machines were turned on by bitcoins, which caused the total utilized power to jump to new highs.

Ethan, CTO, Luxor Mining CenterVera said that most miners operate at 85% margin, which is a very high rate for a business. Hence the increased interest in ASICs and the delivery queue lasting from six months. The current average hashrate of the Bitcoin network exceeds 179 Eh / s. At the same time, as Ethan notes, the pool's clients began to connect installations released back in 2014.
Bitcoin miners skim the cream: even eight-year-old ASICs are profitable

The high cost of Bitcoin led to record miners' earnings last month, with total revenue reaching $ 1.6 billion.
Bitcoin miners skim the cream: even eight-year-old ASICs are profitable

Growth in profitability and renewal of old machinesbring new retail players to the market, while institutional investors preferring cryptocurrency funds have moved to a wait and see attitude. Last week, investment flow dried up to $ 21 million, the lowest in six months.
Bitcoin miners skim the cream: even eight-year-old ASICs are profitable

However, mining companies are not going to lag behind inan arms race from ordinary enthusiasts taking old devices out of boxes. So, in the first quarter of this year, Marathon added 10,300 s-19 Pro units from Bitmain to its capacity, by the end of this year it expects to expand the fleet to 100,000 ASICs, and by January 2022 - to reach a capacity of 10.3 Eh / s. The ambitious plans of publicly traded companies are pushing stock prices higher and fueling interest in investing in Bitcoin.
Bitcoin miners skim the cream: even eight-year-old ASICs are profitable

Interest in mining is driven by the high costBitcoin, and the current shortage of semiconductors is holding back the growth in mining complexity. This makes mining even more attractive, and the price of used rigs rises again. In such a situation, the likelihood of continued growth in Bitcoin remains high.

Analytical group StormGain