Bitcoin miners' profit margin has tripled! What is the average cost of producing one Bitcoin?
Bitcoin miners' profit margins triple
According to Glassnode data, despite the increasing difficulty of mining, the profit margin of Bitcoin miners has tripled.
The latest Bitcoin Difficulty Regression Model shows that the average cost of mining one BTC is about $33900, and the Bitcoin price has reached about $105700 at the time of writing this article, greatly increasing the profit margin for miners.
However, due to the bull market, network computing power (hashrate) is steadily increasing, and competition among miners is intensifying; In addition, the Bitcoin halving in April 2024 has reduced the mining reward per memory block for miners from 6.25 BTC to 3.12 BTC, resulting in a certain degree of compression of this profit margin. According to Glassnode data, the current revenue per Exahash (EH/s) is approximately $60800.
Bitcoin's computing power continues to grow
According to CoinWarz data, the total power of the Bitcoin network is approximately 600 exahash/s (EH/s), but it has now grown to between 700 EH/s and 900 EH/s, indicating that more and more miners are joining the market, further intensifying competition.
Mining is crucial for the security and operation of the Bitcoin network, and the resilience of miners not only benefits Bitcoin, but also has a positive impact on the energy market. For example, Bitcoin miners reduced their electricity consumption during peak demand periods by adjusting their mining activities, thereby reducing Texas' dependence on gas peaker plants and ultimately helping the state save $18 billion in electricity infrastructure costs.
Miners turn to artificial intelligence (AI) and high-performance computing (HPC) businesses
Due to declining income and intensified competition, miners will begin to diversify their development towards high-performance computing (HPC) and artificial intelligence (AI) businesses in 2024. For example, Hive Digital We have already redeployed some NVIDIA devices to AI applications, generating revenue of over $2 per hour, while the revenue from cryptocurrency mining is only about $0.12 per hour.
Miners emulate micro strategies
Since last year, many Bitcoin miners have started to adopt strategies similar to micro strategies. Hoarding Bitcoin instead of selling it, according to a report released on January 7th by Digital Mining Solutions and BitcoinMiningStock.io:
In 2024, there will be a significant change in the strategy of Bitcoin miners, with many choosing to retain a larger proportion of their mined BTC or even not sell it at all
This strategy may further drive supply tightening in the Bitcoin market, affecting future price trends.
