Originally published on: August 08, 2024
Blocksbridge’s latest report has unveiled a concerning trend in the world of cryptocurrency mining. The miner hashprice, a key indicator of mining profit margins, has plummeted to below $36 per petahash per second (PH/s). This record low has sparked worries about the future profitability of miners, especially with an upcoming difficulty recalculation looming.
Despite a slight recovery in the price of BitcoinBTC, the miner hashprice remains stagnant at around $40 PH/s, which is a staggering 10% lower than the previous rock-bottom figure recorded in July 2024.
Leading public mining companies like MARA, Core Scientific, and Riot Platforms are feeling the pinch as well. With all-in projected monthly mining costs surpassing $60,000 per Bitcoin, their profit margins are razor-thin. MARA, in particular, has revealed the highest all-in mining cost for the month of July.
The report also highlights the divergent strategies adopted by these mining giants. While MARA and Riot Platforms hold onto their Bitcoin reserves, Core Scientific opts to sell all of its mined Bitcoin to cover operational expenses. Each approach comes with its own set of challenges and opportunities for these companies.
In a bid to safeguard their operations, some mining companies like CleanSpark are strategically increasing their treasury holdings. MARA recently announced a significant boost to its treasury with the acquisition of 2,282 BTC, underscoring its commitment to a long-term Bitcoin treasury strategy.
As Bitcoin’s mining difficulty hits a new all-time high, the industry is bracing for further challenges. The difficulty is set to be recalibrated in the coming weeks, adding another layer of uncertainty to the already volatile landscape of cryptocurrency mining.
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