Bitcoin ASIC miner prices swing at levels not seen in years

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Bitcoin ASIC mining machines optimized for the sole purpose of mining Bitcoin are currently selling at low prices per barrel not seen since 2020 and 2021, in what is seen as another sign of a deepened crypto bear market.

According to the latest data from the Hashrate Index, the most efficient ASIC miners, those that generate at least one terahash per 38 joules of energy, saw their prices fall by 86.82% compared to May. On December 7, 2021, a peak of $119.25 per terahash fell to $15.71 on December 25.

Miners in this category include Bitmains Antminer S19 and MicroBTCs Whatsminer M30s.

The same statement applies to mid-tier machines, with prices averaging $10.23 after a massive 89.36% drop from its all-time high of $96.24 in May. 7, 2021.

However, the least efficient machines, those that require more than 68 Joules per TH, are now priced at $4.72, down 91% from its all-time high of $52.85. The last time its price was close to this was around November 5, 2020.

Bitcoin ASIC Miner price index for machines with different levels of efficiency. Source: Hashrate Index.

The price crash has been widely attributed to big Bitcoin mining companies that have struggled to remain profitable throughout the bear market, with many of them filing for Chapter 11 bankruptcy, taking on debt or selling their holdings. and BTC equipment in order to stay afloat.

Some of the companies that have done so include Core Scientific, Marathon Digital, Riot Blockchain, Bitfarms, and Argo Blockchain.

Related: Bitcoin Miner Exit Rate Hits 6-Month High in New Threat to BTC Price

But the sharp drop in prices has met with enthusiastic buyers. Among these are many Russian-based mining rigs like BitRiver that are able to capitalize on relatively low electricity costs, with up-to-date hardware capable of mining one Bitcoin (BTC) at around $0.07 per kilowatt hour in the energy-rich country. nation.

While it’s hard to predict which direction ASIC miner prices will head next, Digital Mining Solutions’ Nico Smid pointed out in a Dec. 21 tweet that ASIC miner prices hit their lowest level in the last cycle. Bitcoin halving in May. 11, 2020 and rose aggressively shortly after something that could play out in the next Bitcoin halving cycle which is expected to take place on April 20, 2024.

Source: Twitter

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