As the bitcoin halving event approaches, a significant drop in bitcoin’s hashprice poses a looming threat bitcoin to the profitability of mining operations. Recent data from Luxor highlights this downward trend, with hashprice, which measures revenue per PH/s of computing power, falling to around $76.5/PH/s. This decline follows a 20% price correction in bitcoin after it peaked at $49,000 on January 11, according to Bits.media.
The hashprice drop is critical as TheMinerMag’s data reveals that the median fleet hashcost for 17 North American mining companies was approximately $40/PH/s in Q3. This rate is crucial for these companies to break even and earn gross profits. Should the hashprice stay at $80/PH/s before April 22, the estimated halving date, it is set to halve to $40/PH/s the following day, potentially leading to gross losses for many miners.
This scenario is particularly alarming for Bitmain, the largest miner manufacturer worldwide, which self-mines and operates cloud mining through BitFuFu. Bitmain’s substantial mining capacity, including 4.1 EH/s of S19jXPs and 15.1 EH/s of S19XPs, requires a hashprice of $39.6/PH/s to break even, given their electricity rates and efficiency.
Bitcoin’s network hashrate recently rebounded to 520 EH/s, recovering from a dip due to power curtailments in Texas during a cold outbreak. This recovery is a positive sign, but the impending halving and hashprice dynamics present a challenging landscape for miners. They now face the task of significantly improving fleet efficiencies to remain profitable post-halving.