Miner Weekly: Public Firms Cut Bitcoin Mining Costs

This article first appeared in Miner Weekly, BlocksBridge Consulting’s weekly newsletter curating the latest news in bitcoin mining and data analysis from TheMinerMag. Subscribe to receive in your inbox once a week.

In the post-halving world of bitcoin mining, operations are grappling with the profitability squeeze as the network’s hashprice stays still around $40/PH/s. 

Bitcoin’s hashprice remains low despite the asset trading around $60,000, mostly because the network’s hashrate has not significantly retreated. After the halving, not only did we NOT see double-digit and consecutive difficulty declines, but the difficulty was pushed up to set new all-time highs – twice. For mining operations, this is the moment to adapt, innovate, and continue finding ways to operate more efficiently in an increasingly competitive environment. 

However, it’s not all doom and gloom. Recent Q2 filings from major mining companies offer us a look into how the industry is coping with the post-halving reality. 

Thanks to strategic efforts and technological advancements, the median total hashcost among 15 mining companies has decreased from $60/PH/s in Q4 2023 and Q1 2024 to $50/PH/s in Q2 2024, according to our dashboard updates. This includes each company’s fleet, corporate, and financial hashcosts, but excludes depreciation and stock-based compensation expenses.

This reduction in total hashcost is a critical development. It means that although revenue has decreased, the cost of mining is also coming down, helping to cushion the blow to miners’ margins. In other words, the efforts of improving fleet efficiency with more advanced hardware, cutting corporate overhead, and deleveraging financial positions are paying off! This is also preparing miners for greater upside when bitcoin’s hashprice returns bullish (Hopefully soon 🙂). 

Regulation News

• IMF Calls for Increased Electricity Taxes on Crypto Miners, AI Data Centers – Decrypt
• Malaysian Police Steamroll 985 Bitcoin Miners Again in Power Theft Crackdown – TheMinerMag

Corporate News

• Bitcoin Miner Greenidge Sues NY Regulator over Permit Renewal – TheMinerMag
• BitFuFu’s Cloud Mining Clients Paid $60k Per Bitcoin in Q2 – TheMinerMag
• Riot Nears 20% in Bitfarms, Close to Trigger ‘Poison Pill’ – TheMinerMag

Financial News

• Bitdeer Joins Bitcoin Miners to Issue $150M Convertible Notes – TheMinerMag
• Bernstein notes growing investor interest in bitcoin miners pivoting to AI – The Block
• U.S.-Listed Bitcoin Miners Have the Upper Hand Over “non-U.S.” Peers: Bernstein – Coindesk
• Bitfarms Expands US Bitcoin Mining with $175M Stronghold Merger – TheMinerMag

Feature

• Public Miners Raise a Couple Billi, CleanSpark May Launch a Mining Pool, and Solo Mining is Cool Again – The Mining Pod
• How To Become A Bitcoin Miner With The Coin Dad – The Mining Pod

Related:

Protected: Breaking Down Q3 Cost of Bitcoin Mining and New Hashcost Metric

Protected: Bitcoin Miners Slash Hashcost Ahead of Halving: IREN, CLSK, HIVE

Miner Weekly: Negative Margins Become a Harsh Reality Post-Halving

Miner Weekly: Bitcoin Mining Hashcost, Explained