Miner Weekly: Public Firms Cut Bitcoin Mining Costs
Median total hashcost dropped to $51/PH/s in Q2
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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 🙂).
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