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HomeCoinsBitcoinAnalysis: The Antminer profitability disaster

Analysis: The Antminer profitability disaster

Bitcoin’s fall from its all-time excessive to a low of $15,700 has been one of the vital dominating narratives this yr. Bitcoin misplaced 75% of its worth since Nov. 10, 2020, and over 65% for the reason that starting of the yr.

Nevertheless, a way more exceptional story than Bitcoin’s volatility is the divergence between its worth and its hash charge.

Regardless of dropping three-quarters of its worth in a yr, Bitcoin’s hash charge reached its all-time excessive of 271.8 EH/s. This divergence between the hash charge and the worth is a novel incidence that hasn’t occurred in any of the earlier bear markets.

btc price hash rate
The divergence between Bitcoin’s worth and its hash charge in 2022 (Supply: Blockchain.com)

The skyrocketing hash charge turns into an excellent larger outlier when evaluating it to miner revenues. CryptoSlate beforehand analyzed miner income and located that earnings proceed to lower even for the biggest and most effective mining operations.

CryptoSlate’s evaluation of two well-liked Bitmain miners paints a bleak image of the mining business. Wanting on the Antminer S9 and Antminer S17 reveals that machines are scuffling with profitability.

Launched in 2017, the Antminer S9 remained worthwhile all through years of market volatility. Nevertheless, as the worldwide hash charge started to broaden in 2020, the S9 noticed its profitability fall till it lastly turned unprofitable in Might 2022, when virtually all machines have been faraway from the community.

antminer profitability
Mining profitability for numerous Antminers from 2010 to 2022 (Supply: Glassnode)

With an all-in-sustaining price of round $0.05/kWh, Bitcoin’s worth would wish to surpass $19,000 for the Antminer S9 to turn out to be worthwhile once more.

antminer s9 mining profitability
Mining profitability for the Antminer S9 in 2022 (Supply: Glassnode)

The Antminer S17 continues to be worthwhile. Launched in 2019 as a extra highly effective iteration of the S9, the S17 produced a most hash charge of 56 TH/s. Bitcoin’s present worth and rising hash charge put the profitability of the S17 at simply $36 per day. This slim revenue has been lowering virtually each day and is predicted to drop even additional within the coming weeks.

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The S17 has been scuffling with profitability all year long. The Terra collapse in June 2022 made the S17 unprofitable for the primary time ever, as Bitcoin dropped nicely under $16,000 wiping out billions from the market.

antminer mining profitability
Each day earnings of varied Antminers in 2022 (Supply: Glassnode)

The continuing market volatility, mixed with the ever-expanding hash charge, is at present placing the profitability of the S17 into query. Wanting on the profitability chart for the S17 reveals that the machine is experiencing a development much like the S9.

Barely breaking even, the S17 would turn out to be unprofitable if Bitcoin have been to fall below $15,500. Crossing the $15,500 might push miners to unplug 1000’s of S17s.

antminer s17 mining profitability
Mining profitability for the Antminer S17 in 2022 (Supply: Glassnode)

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