Mining Bitcoin Profitably Has Never Been Harder

The below is a direct excerpt of Martys Bent Issue # 1275: “Miners remain in a world of hurt.” Register for the newsletter here.The pain in the mining world continues as hash rate skyrockets, the trouble adjusting upwards as an outcome and hash rate craters as the rate of bitcoin has actually stayed in a tight range in between roughly $18,000 and $20,000 for more than six weeks. After yesterdays upward difficulty change of 3.4%, hash rate was up to $0.055, according to Braiins Insights. This is the most affordable it has actually remained in the ASIC era.Lets put this into perspective by highlighting the success of various ASIC designs mining at an all-in electrical energy cost of $0.06, $0.08 and $0.10 per kWh.via Braiins InsightsAs you can see, at an all-in expense of $0.06/ kWh, most ASIC models pay, though not extremely. You are presently mining at a loss if youre running M20s, s9s or m21s. Now lets take a look at how this looks when we bump up the expense of electrical energy by $0.02/ kWh.via Braiins InsightsFour more ASIC models get driven into unprofitable territory with the S19 and M30s+ scraping by with $0.01 and $0.05 of day-to-day earnings, respectively– unless youre running Braiins OS+ firmware on the S19, in which case you d be netting $0.50 per day in profit. The pain is starting to get nauseating. Now lets bump it up to the all-in expense of $0.10/ kWh.via Braiins InsightsThis is what we in business describe as an “outright bloodbath.” The only miner that is lucrative beyond an S19 Pro running Braiins OS+ is the S19 XP– the latest, most highest-hashing and effective model on the marketplace. If you are running any other model, you are presently in the process of bleeding cash. Not a circumstance anybody wishes to be in.If I had to guess based on my understanding of the mining market and the electrical energy rates I have actually stumbled upon while communicating with other miners in the area throughout this year, I would wager that there is a significant quantity of hash rate plugged into power sources that are charging $0.07 to $0.10/ kWh. Miners are either barely managing or hemorrhaging cash at the moment. The discomfort is real.Just recently Core Scientific raised their electricity rates for their hosting customers to about $0.10/ kWh.Every single miner hosting with Core Scientific who isnt running an S19 XP or an S19 Pro with Braiins OS+ firmware is currently mining at a loss. According to its latest regular monthly update, the business self-mines 13 EH/s produced by roughly 130,000 ASICs and hosts 102,000 ASICs producing 9.5 EH/s. I think its safe to state that most of these devices arent S19 XPs considering they just began releasing that model in July 2022. With that being stated, Core Scientifics self-hosted miners are probably mining at lower than $0.10/ kWh considering they own the power purchase agreement and are most likely mining at expense while charging hosting customers a greater rate to produce a margin for their service. Still, this is not a perfect environment for Core Scientific or any other miner with an all-in electrical energy expense above $0.06/ kWh.This all begs the question, “Why the hell is the hash rate still yelling?”From what I have actually heard, a great deal of jobs that have actually remained in development for well over a year in Texas just got energized at the beginning of the month. These groups spent tens of millions of dollars in facilities expenses and went through the administrative difficulties that come with linking to ERCOT. They werent going to reach the finish line and not turn on their ASICs. As it stands today, the mining market seems to be caught in a game of “who can hold their breath the longest.” The length of time can these market conditions continue without countless miners needing to switch off their machines so they stop losing money, or worse apply for bankruptcy?Compute North was the very first domino to fall nearly a month earlier when they applied for personal bankruptcy. Your Uncle Marty anticipates them to be the very first of many unless the rate rips or some on-grid mega mine has an important error that turns their makers off. Neither situation is what you desire to be banking your service on if youre a bitcoin miner.

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The only miner that is rewarding outside of an S19 Pro running Braiins OS+ is the S19 XP– the latest, most highest-hashing and efficient model on the market. The pain is real.Just last week Core Scientific raised their electrical energy rates for their hosting customers to about $0.10/ kWh.Every single miner hosting with Core Scientific who isnt running an S19 XP or an S19 Pro with Braiins OS+ firmware is currently mining at a loss. With that being said, Core Scientifics self-hosted miners are probably mining at lower than $0.10/ kWh considering they own the power purchase contract and are most likely mining at cost while charging hosting clients a greater rate to produce a margin for their company. Still, this is not a perfect environment for Core Scientific or any other miner with an all-in electricity expense above $0.06/ kWh.This all asks the concern, “Why the hell is the hash rate still yelling?