Miner Weekly: S19XPs May Not be Entirely Safe Post Halving

Revisiting bitcoin miners’ breakeven hashprice

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.

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The “sell-the-news” momentum has continued over the past week. Bitcoin dropped below $40,000, experiencing a 20%+ correction after briefly hitting $49k on Jan 11 when a dozen spot bitcoin ETFs began trading.

Sadly, there’s not much good news for bitcoin’s hashprice either: it has once again declined below $80/PH/s after some very lucrative days in December. 

As bitcoin’s halving is officially less than 90 days away — currently estimated to be April 22 — it’s worth revising the breakeven hashprice for various bitcoin miners, especially given the recent market pullback.

No one knows where bitcoin’s hashrate will be after halving — the same, of course, goes for bitcoin’s market price. But at least it’s expected that bitcoin’s hashprice, the dollar amount of daily revenue expected from 1 PH/s of computing power, will go down by roughly 50% immediately after halving.

That creates some interesting dynamics. Bitcoin’s hashprice is at $76/PH/s at the moment, and if it doesn’t break out in the next 90 days, it will likely drop to sub $40/PH/s right after April 22.

In that scenario, anyone operating an S19XP at an average electricity of $0.075/kWh (recall the 20 EH/s by Bitmain and BitFuFu) will be in a tough spot since their equipment may not have much gross margin to squeeze, let alone net profits. 

So unless they have access to the latest generation of equipment with a sub-20 J/TH of efficiency or a sub-$55/mWh power rate, chances are there will be little gross profit in case bitcoin’s hashprice really halves to sub-$40/PH/s.

With that said, bitcoin mining is programmed to regulate itself. If hashprice becomes too bearish to remain online, we may see less efficient operators unplug from the network. That will reduce the network hashrate and difficulty, potentially pushing hashprice up again. 

But if bitcoin’s price still doesn’t break out after halving, we may experience the same excruciating bitcoin mining summer as we did in 2020 with infrastructure overcapacities. 

Regulation News

  • Bitcoin mining syndicate in Kuala Lumpur busted following arrest of two Chinese illegals – The Star Online
  • In Murphy, North Carolina’s western-most town, crypto mining noise prompts new regulations – Blue Ridge Public Radio

Hardware and Infrastructure News

  • Bitfarms Touts 100 MW Paraguay Expansion with Land Purchase – TheMinerMag
  • Electricity Demand at Data Centers Seen Doubling in Three Years – Bloomberg
  • Bitcoin Hashprice Drops Below Critical Level as Halving Looms – TheMinerMag

Corporate News

  • Core Scientific shares tumble on first day of relisting – Blockworks
  • Bitcoin Miner Cipher Down 6% After Shareholder Bitfury Note – TheMinerMag
  • Sphere 3D Settles with Core Scientific for $10 Million in Equity – TheMinerMag
  • Bitcoin Miner Hut 8 Hits Out at Short-Selling Report – CoinDesk

Financial News

  • Bitcoin Mining Stocks Shed $6 Billion Since New Year – TheMinerMag
  • Canaan Raises Another $50 Million by Selling More Preferred Shares – Link


  • Investing In Bitcoin Mining In 2024 W/ Michael Carter (BBT) – The Mining Pod