Analyst: Bitcoin halving may cause miners' net profit to fall into negative value

金色财经 · 2023-07-09T14:43:02.000Z

Golden Finance reports that the next Bitcoin (BTC) halving will occur in April 2024, which may push miners' profits into losses. HashrateIndex cryptocurrency mining analyst Jaran Mellerud said that nearly half of Bitcoin miners have sub-optimal mining operations. Therefore, these miners are likely to be in trouble after the next halving. After the halving, the break-even electricity price for the most common mining rigs is expected to drop from $0.12/kWh to $0.06/kWh. However, approximately 40% of BTC mining rigs have operating costs higher than $0.06/kWh. Therefore, miners with operating costs above $0.08/kWh and those without mining rigs may be severely affected by the halving. Wolfie Zhu, director of research at The Miner Mag, the research arm of mining consultancy Blocks Bridge, said that if everything is taken into account, the total cost for some miners is much higher than Bitcoin's current price. For many miners with less efficient operations, net profits will become negative. Ethan Vera, chief operating officer of Luxor Technologies, estimates that global mining industry debt has reduced from $8 billion in 2022 to about $4.5 billion to $6 billion currently.

Golden Finance reported that the next Bitcoin (BTC) halving will occur in April 2024, which may put miners' profits into the red. Jaran Mellerud, a cryptocurrency mining analyst at HashrateIndex, said that nearly half of Bitcoin miners' mining operations are not at optimal efficiency. Therefore, these miners are likely to be in trouble after the next halving. The break-even electricity price for the most common mining machines after the halving is expected to drop from $0.12/kWh to $0.06/kWh. However, about 40% of BTC mining machines have an operating cost per kWh higher than $0.06/kWh. Therefore, miners with operating costs higher than $0.08/kWh and those without mining machines may be severely affected by the halving. Wolfie Zhu, research director of The Miner Mag, the research department of mining consulting firm Blocks Bridge, said that if everything is taken into account, the total cost of some miners is much higher than the current price of Bitcoin. For many miners with lower operating efficiency, net profit will become negative. Luxor Technologies Chief Operating Officer Ethan Vera estimates that global mining industry debt has been reduced from $8 billion in 2022 to around $4.5 billion to $6 billion currently.