The Struggle is Real: Declining Bitcoin Mining Profitability
Bitcoin mining profitability has taken a nosedive of 44% over the last year. It’s akin to buying your favorite flavor of ice cream, only to find out they’ve replaced it with kale. Yes, you read that right! Profitability per terahash per second (TH/s) has plummeted to approximately $0.071, marking a staggering 82% decrease since the high-flying crypto days of late 2021. But hold your horses, because some companies are charging full steam ahead!
CleanSpark: Making Moves in a Tight Market
One of the boldest moves comes from CleanSpark, an American Bitcoin mining firm that seems determined to thrive no matter what. On June 1, 2023, they announced a jaw-dropping purchase of 12,500 state-of-the-art Antminer S19 XP units for $40.5 million. Here’s the kicker: they snagged these puppies for just $23 per TH/s, significantly lower than the going rate. Talk about shopping savvy!
Details, Details, Details
These newly acquired machines have a power efficiency rating of 21.5 joules per TH, and with each unit boasting a hash rate of 141 TH/s, CleanSpark is clearly thinking big. This bold acquisition will lift its total hash rate to a whopping 8.46 EH/s. Zach Bradford, CleanSpark’s CEO, assured shareholders that this purchase is a step towards their ambitious target of reaching 16 EH/s by year-end. You got to admire that hustle!
Mining Difficulty and Hash Rates: A Rollercoaster Ride
As if the profitability crisis wasn’t enough, Bitcoin mining is also grappling with ever-increasing difficulty levels. As of June 1, 2023, difficulty hit a staggering high of over 50 trillion, keeping miners awake at night, contemplating their life choices. With the network hash rate at a record 395 EH/s on May 30, miners now find themselves in a newfound game of ‘who can keep up.’
Comparative Success: Other Players in the Game
Despite these challenges, other firms aren’t backing down. Bitfarms mined 459 BTC in May, showcasing a 6.5% year-over-year production increase. However, they noted that their 47% hash rate growth was “offset” by a 65% surge in network difficulty. It’s like running a race but constantly being handed weights to lug around!
Cipher Mining also boasted record numbers, mining 493 BTC partially attributed to the spike in transaction fees during the BRC-20 memecoin minting frenzy in early May. Meanwhile, Compass Mining is expanding their horizons with a new facility set to open in Ohio. Who said Bitcoin mining had run its course?
