Latest news with #AntminerS19XP
Arabian Post
22-05-2025
- Business
- Arabian Post
Bitcoin Miners Accelerate Sell-Off Amid Mounting Revenue Pressures
Publicly traded Bitcoin mining companies sold 115% of their April production, marking the most aggressive monthly liquidation since late 2022. This intensified sell-off occurred despite Bitcoin reaching a new all-time high of nearly $109,500 in May, underscoring the financial strain miners face amid declining profitability metrics. The surge in Bitcoin's price was insufficient to offset the challenges miners encountered. Hashprice—a key indicator measuring miner revenue per unit of computing power—remained under significant pressure. Throughout April, hashprice fluctuated between $40.71 and $49.08 per petahash per second , averaging $45.46. This level is perilously close to the break-even point for many operators, particularly those utilizing older hardware models like the Antminer S19 XP and S19 Pro. Compounding the issue, Bitcoin's network difficulty experienced an 8.3% increase over two consecutive adjustments in April, reaching an average of 120.98 trillion. This escalation in difficulty, coupled with a modest 1.5% rise in Bitcoin's price, further compressed miners' margins. Additionally, transaction fees, which constitute a portion of miners' income, remained subdued. Although there was an 8.7% month-over-month increase in transaction fees, they still accounted for only 1.34% of total block rewards, offering limited relief. ADVERTISEMENT The financial pressures have prompted miners to liquidate more Bitcoin than they produce. This trend reflects the urgent need to cover operational costs, including energy expenses and equipment upgrades. The situation is exacerbated by external factors such as rising energy prices and geopolitical uncertainties, including trade tensions that threaten to increase operational costs further.
Forbes
25-03-2025
- Business
- Forbes
Bitcoin Miners Hit Breaking Point One Year After Halving
President Donald Trump vowed to make America "The undisputed Bitcoin superpower and the crypto capital of the world" at the Blockworks Digital Assets Summit on March 20th, 2025. The key profitability metric, Hashprice, which measures miners' daily earnings per petahash per second, has remained around $48/PH/s. This historically low hasprice coincides with a recent 1.4% increase in mining difficulty. Hashprice reflects how much revenue miners generate from their computational power and is influenced by Bitcoin's price, block rewards, transaction fees, and network difficulty. While a stable hashprice might appear reassuring, it hides a growing squeeze on miners from all sides: rising costs, decreasing rewards, and a hypercompetitive global landscape. The April 2024 Bitcoin halving slashed block rewards from 6.25 BTC to 3.125 BTC. While this event is designed to control Bitcoin's issuance and maintain scarcity, it also cut miner revenues in half overnight. Unlike previous halvings, this one came at a time when Bitcoin's price growth has stalled and transaction fees have dipped to historic lows, making up just 1.12% of miner rewards earlier this month. Older mining machines like the Antminer S19 XP and S19 Pro are now barely breaking even. Many miners are operating at a loss unless they have access to ultra-cheap energy. The global hashrate has recently dipped below 800 EH/s, down from over 840 EH/s earlier in March, as some miners unplug to cut losses. Some miners are turning to creative solutions, such as heat reuse, to create alternative lines of revenue. Europe based bitcoin company Braiins is pioneering 'hashrate heating,' where bitcoin mining machines are repurposed to warm homes and buildings. Tyler Stevens, author of Bitcoin Mining Heat Reuse, sees this as a powerful answer to mining's economic challenges. Stevens told Forbes, 'an interesting solution to the challenges that bitcoin miners face is a focus on reusing the heat energy that the machines exhaust.' He goes on to say, 'If they're used in applications where electric heat is the primary product, from home appliances to district heating, then the bitcoin earnings are simply a rebate on heating costs. Hashprice and other challenges are largely solved when you need the heat anyway.' Instead of being wasted, mining heat can be transformed into a useful product. Amid tightening margins, some countries are showcasing alternative paths. El Salvador, the first nation to adopt bitcoin as legal tender, has mined over 474 bitcoins, worth about $29 million, using geothermal energy from the Tecapa volcano since 2021. This volcano-powered operation is promoted as a sustainable model and contributes to the country's total bitcoin holdings, now valued at around $354 million. Similarly, in Pakistan, crypto industry leaders are pushing for regulatory clarity and investment in bitcoin mining. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, proposed using excess national energy for bitcoin mining to stimulate economic growth. With flat revenues, rising hashrate, and new global players entering the scene, the Bitcoin mining industry is under mounting pressure. Hashprice may be holding steady, but beneath the surface, the landscape is shifting. For miners to survive, and thrive, they'll need to innovate, adapt, and explore every watt of opportunity.
