Bitcoin price plummets, pushing most mining rigs into loss

Almost all Antminer Bitcoin mining models — except for the latest versions — are operating at a loss after Bitcoin’s price plummeted, according to data from Antpool.

According to this data source, only three models currently maintain stable profitability: Antminer S23 Hydro, Antminer U3S23H, and Antminer S23e U2H — all part of the S23 series launched last year and beginning deliveries this month — with daily profits of about $0.016 per terahash (TH/s).

Meanwhile, many other flagship models such as the Whatsminer M6 series, older Antminer models, and less well-known brands are operating below breakeven or have already started losing money. The Antminer S21 series models are also nearly unprofitable, according to Antpool. Both Antpool and Antminer are affiliated with the mining hardware manufacturer Bitmain.

Bitcoin’s price recently dropped below $75,000 before slightly rebounding to around $78,500. This downward trend has resulted in miners earning fewer rewards for each unit of energy consumed to keep the network running. The shrinking profit margins are occurring even as the overall network hashrate has recently decreased due to cold weather sweeping across many regions in North America, forcing some mining facilities to cut back or temporarily shut down.

Nevertheless, Bitcoin’s hashrate remains near record highs, with a new monthly average peak of 927.7 EH/s. When the hashrate decreases, the block rewards distributed per unit of computational power of the remaining active machines increase, temporarily improving profit margins despite falling prices. However, the Bitcoin mining industry as a whole continues to face intense competition.

Among the devices, the Antminer S23 Hydro leads in performance, with profits of approximately $18.53 per day per machine. Meanwhile, the Antminer S21 still makes a profit but only around $0.12 per day per machine. The Whatsminer M63S is reportedly operating at a loss of about $0.47 per day per machine.

Data shows that the average monthly revenue of Bitcoin miners per TH/s has been steadily declining since August last year. The long-term trend indicates mining profits are approaching the $1 per TH/s mark, continuing the weakening trend following the market crash in 2022. Some miners even faced a “profit crisis” last year despite Bitcoin reaching record high prices.

In recent years, many mining companies have expanded into high-performance computing (HPC) and AI services to diversify revenue streams and reduce dependence on increasingly competitive Bitcoin mining operations.

Notably, the stocks of some publicly listed Bitcoin mining companies also declined during the early week trading session, including MARA Holdings (down 2.5%), Cleanspark (down 6%), and HIVE Digital (down 10%).

Shach Sanh