Bitcoin Miners Face Revenue Slump as Hash Rate Surges, Relying on Stock Sales to Stay Afloat
Summary:
Bitcoin mining revenue has reached a low point, while hash rate has hit new highs. Despite the network's security, miners are struggling as revenue has fallen sharply. To stay afloat during the bear market, miners relied on funds from stock sales. However, with those lifelines drying up, they may need to sell their BTC holdings.
Bitcoin mining revenue has dipped to levels unseen since the collapse of FTX in November 2022, despite the hash rate reaching new highs. The Bitcoin network reached a peak hash rate of 414 exahashes per second (EH/s) on August 18, representing a 54% increase from the beginning of the year and an 80% increase over the past year. However, despite the network's security, Bitcoin miners are struggling as revenue has sharply fallen to levels seen during Bitcoin's market cycle low in November 2022. Revenue now stands at just $0.060 per terahash per second per day, less than half of what it was in May. As more efficient mining rigs are produced, industry experts suggest that Bitcoin prices need to increase to maintain profitable mining operations at such high hash rates. To navigate the bear market, Bitcoin miners reportedly relied on funds from stock sales in the second quarter, with major publicly traded miners raising about $440 million. However, with these sources drying up, miners may have limited options and may need to resort to selling their BTC holdings.
Published At
8/28/2023 4:51:10 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.