Bitcoin

when

April

Yield

<div class="finbold">
 <p class="paragraph">Bitcoin (BTC) <a rel="noopener noreferrer nofollow" title="production" href="https://thebittimes.com/tag/production.html">production</a> <a rel="noopener noreferrer nofollow" title="costs" href="https://thebittimes.com/tag/costs.html">costs</a> have reached record highs post-<a rel="noopener noreferrer nofollow" title="halving" href="https://thebittimes.com/tag/halving.html">halving</a>, as the same mining effort now renders half the revenue. Thus, Bitcoin’s price must meet the <a rel="noopener noreferrer nofollow" title="production" href="https://thebittimes.com/tag/production.html">production</a> cost threshold to avoid industry turmoil and increased centralization for the leading cryptocurrency.</p>
 <p class="paragraph">Charles Edwards, founder of <em>Capriole Investments</em>, reported an electrical cost of $77,400 per Bitcoin mined on April 22. Therefore, as of this writing, Bitcoin miners spend $11,000 more in electricity for each mined BTC, currently worth $66,175.</p>
 <p class="paragraph">Furthermore, <em>Capriole</em>‘s <a rel="noopener noreferrer nofollow" title="production" href="https://thebittimes.com/tag/production.html">production</a> cost is staggering at $128,989, resulting in $52,000 estimated losses to produce a single BTC.</p>
 <div class="border border-red-300 rounded-xl p-6 not-prose mb-6">
  <h3 class="text-2xl font-black mt-0 flex gap-x-3 mb-5">
   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"><path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
    </path>
   </svg> Picks for you</h3>
  <div class="grid md:grid-cols-2 gap-x-10 gap-y-3 md:gap-y-5 divide-y divide-gray-300 md:divide-y-0">
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Where do billionaires keep their money during market turbulence? <span class="self-center text-xs text-slate-500">36 mins ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    China’s debt to hit $20 trillion by 2030 at current pace <span class="self-center text-xs text-slate-500">59 mins ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    U.S. Treasury Yield chart sparks economy recession debate; Is this time different? <span class="self-center text-xs text-slate-500">1 hour ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    XRP plunge triggers frenzy, whales scoop up 31 million tokens in a week <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
  </div>
 </div>
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment">
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;">
  </div>
 </div>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="728" src="https://cdn.thebittimes.com/images/2024/04/23/3fe100a242bdd6d1c3ceabeafa60a4fe.webp" alt class="wp-image-171040" srcset="https://cdn.thebittimes.com/images/2024/04/23/3fe100a242bdd6d1c3ceabeafa60a4fe.webp 1024w, https://cdn.thebittimes.com/images/2024/04/23/3fe100a242bdd6d1c3ceabeafa60a4fe.webp 300w, https://cdn.thebittimes.com/images/2024/04/23/3fe100a242bdd6d1c3ceabeafa60a4fe.webp 768w, https://cdn.thebittimes.com/images/2024/04/23/3fe100a242bdd6d1c3ceabeafa60a4fe.webp 1183w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Bitcoin Production Cost and Electrical Cost. Source: <em>Capriole Investments</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="h-macromicro-s-average-mining-cost-and-luxor-s-hashprice-index">MacroMicro’s average mining cost and Luxor’s Hashprice index</h2>
 <p class="paragraph">Meanwhile, data from <em>MacroMicro</em> shows a less-worse cost/price ratio of 1.57, according to estimates from <em>Cambridge University</em>. As per this data, Bitcoin’s average mining cost was above $102,000 on April 21, at historical highs in production costs, with miners theoretically losing around $36,000 for each BTC they issue.&nbsp;</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="373" src="https://cdn.thebittimes.com/images/2024/04/23/d6a0de91ac76242bee2db5d6491b1382.webp" alt class="wp-image-171041" srcset="https://cdn.thebittimes.com/images/2024/04/23/d6a0de91ac76242bee2db5d6491b1382.webp 1024w, https://cdn.thebittimes.com/images/2024/04/23/d6a0de91ac76242bee2db5d6491b1382.webp 300w, https://cdn.thebittimes.com/images/2024/04/23/d6a0de91ac76242bee2db5d6491b1382.webp 768w, https://cdn.thebittimes.com/images/2024/04/23/d6a0de91ac76242bee2db5d6491b1382.webp 1536w, https://cdn.thebittimes.com/images/2024/04/23/d6a0de91ac76242bee2db5d6491b1382.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Bitcoin – Average Mining Costs. Source: <em>MacroMicro</em>
  </figcaption>
 </figure>
 <p class="paragraph">Interestingly, another useful metric for determining whether Bitcoin miners are underwater is the Hashprice Index, coined by <em>Luxor</em>. This index estimates the expected reward for each Terahash per second (TH/s) miners produce in hashrate.</p>
 <p class="paragraph">With the halving, <em>Luxor</em>‘s Hashprice index reached an all-time low of 0.00000118 BTC (118 sats) per TH/s daily. It is worth noting that the mining difficulty adjustment increase also directly affects the Hashprice index, demanding more TH/s for the same amount of produced Bitcoin.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="762" src="https://cdn.thebittimes.com/images/2024/04/23/9ba09282793f587836d28947b9ce3f96.webp" alt class="wp-image-171042" srcset="https://cdn.thebittimes.com/images/2024/04/23/9ba09282793f587836d28947b9ce3f96.webp 1024w, https://cdn.thebittimes.com/images/2024/04/23/9ba09282793f587836d28947b9ce3f96.webp 300w, https://cdn.thebittimes.com/images/2024/04/23/9ba09282793f587836d28947b9ce3f96.webp 768w, https://cdn.thebittimes.com/images/2024/04/23/9ba09282793f587836d28947b9ce3f96.webp 1536w, https://cdn.thebittimes.com/images/2024/04/23/9ba09282793f587836d28947b9ce3f96.webp 1592w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Bitcoin Hashprice Index. Source: <em>Luxor</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="bitcoin-mining-companys-earnings-underwater">Bitcoin mining company’s earnings underwater</h2>
 <p class="paragraph">Notably, with the exception of Marathon Digital Holdings (NASDAQ: MARA) and Gryphon Digital Mining (NASDAQ: GRYP), all publicly traded Bitcoin mining companies reported losses in their activities. Data from <em>CompaniesMarketCap</em> shows that the 21 registered companies accumulated $1.27 billion in losses from their earnings report.</p>
 <p class="paragraph">However, these reports are all from pre-halving results when Bitcoin’s production costs were half what they currently are. In addition, when the Hashprice index was at least two times higher.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="446" src="https://cdn.thebittimes.com/images/2024/04/23/8e33817a22e3e339dd6bc38c2fe57596.webp" alt class="wp-image-171043" srcset="https://cdn.thebittimes.com/images/2024/04/23/8e33817a22e3e339dd6bc38c2fe57596.webp 1024w, https://cdn.thebittimes.com/images/2024/04/23/8e33817a22e3e339dd6bc38c2fe57596.webp 300w, https://cdn.thebittimes.com/images/2024/04/23/8e33817a22e3e339dd6bc38c2fe57596.webp 768w, https://cdn.thebittimes.com/images/2024/04/23/8e33817a22e3e339dd6bc38c2fe57596.webp 1536w, https://cdn.thebittimes.com/images/2024/04/23/8e33817a22e3e339dd6bc38c2fe57596.webp 1884w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Top publicly traded Bitcoin mining companies by earnings. Source: <em>CompaniesMarketCap</em>
  </figcaption>
 </figure>
 <p class="paragraph">In conclusion, current data suggests potential industry turmoil that could cause some Bitcoin mining companies to close. To prevent that, the Bitcoin price would need to rally above the estimated production costs, now at all-time highs.</p>
 <p class="paragraph">If the <a rel="noopener noreferrer nofollow" title="production" href="https://thebittimes.com/tag/production.html">production</a> <a rel="noopener noreferrer nofollow" title="costs" href="https://thebittimes.com/tag/costs.html">costs</a> remain higher than the mining rewards, measured in U.S. dollars, the Bitcoin network could centralize in a few big <a rel="noopener noreferrer nofollow" title="miners" href="https://thebittimes.com/tag/miners.html">miners</a>. Experts have warned about that for years, mentioning the Economy of Scale dynamics inherent to Bitcoin, which threatens the system’s security.</p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoin-miners-underwater-as-production-costs-surge-post-halving-tbt86223.html">https://thebittimes.com/bitcoin-miners-underwater-as-production-costs-surge-post-halving-tbt86223.html</a></p>

Bitcoin miners underwater as production costs surge post-halving

Daftar Isi

TheBitTimes

Artikel lain yang dipublikasikan pada 23 Apr 2024

Toncoin Falls More Than 6% In 24 hours

AI Reshapes Supply Chain Risk Management

Economic Impact on Crypto: What Every Trader Needs to Know

Gummy Price Prediction: GUMMY Soars 27% As This Solana Rival Unleashes Massive Airdrop

Bitcoin Crisis in El Salvador: Hacker Group Leaks Information of Highly Promoted BTC App

PayPal’s Initiative Promotes Sustainable Bitcoin Mining

Bergabunglah dengan buletin gratis kami untuk pembaruan kripto harian!