CoinShares: after the fall of Bitcoin, a third of mining capacities are at a loss

After Bitcoin quotes dropped to $5,350, owners of ASIC miners, which provide the third partnetwork processing power turned out to be in the red. This was announced by the head of the research department at CoinShares Chris Benediksen.

According to him, the average cash flow for miners becomes negative at a price of about $ 4,500, and the business will be profitable at $ 7,400 per BTC.

If the price does not rise to the upcoming halving in May,when the block reward is halved, many miners will stop working after this event. Now they continue to mine bitcoins, counting on a further rally in cryptocurrency prices, a CoinShares spokesman added.

«Miners who have mostly newthe equipment is most likely fine. But those who have previous generations [ASICs] have a hard time. If prices remain like this, the halving will finish them off»- said Benediksen.

In March, against the backdrop of the collapse of Bitcoin, the hash rate of the network decreased by almost 30%. Experts attributed this to the shutdown of unprofitable equipment by miners.

According to CEO of Greenidge Generation SaleIrvine, the Asmin Antminer S9, which still provides the majority of the hashrate, now retains profitability at an electricity price not exceeding $ 0.04 per kWh.

Historically, bitcoin halving has acceleratedprice increases of the first cryptocurrency. However, cryptanalyst Analyst Willy Wu noted that the first cryptocurrency for the first time comes to reduce the reward for the block against the backdrop of a bearish balance of power.

Let us remind you that CoinMetrics analysts believe that Bitcoin can repeat the Litecoin halving scenario - “expectation of growth and collapse.” Litecoin creator Charlie Lee agrees with them.