Bitcoin mining profitability has sharply declined following the recent halving event, marking a challenging period for miners, according to data from Hashrate Index.
The hashprice, a crucial indicator measuring earnings per unit of energized hashrate, plummeted to its lowest levels in the past two months. Initially standing at $92.20 per petahash/second (PH/s) on April 19, the day of the halving, it swiftly dropped to $57.53 within a week, hitting an all-time low of $44.76 by May 1.
Hashprice, calculated as USD per PH per day, hinges on factors like Bitcoin’s block reward size, its market price, and the overall network hashrate. The halving on April 19 reduced the block reward from 6.25 BTC to 3.125 BTC, a change that naturally drove down the hashprice.
Bitcoin’s value also faced turbulence in June, falling by 11% amid significant sell-offs influenced by actions from the US and German governments and concerns over pending sales from Mt. Gox bankruptcy claimants in the coming month.
As of June 27, Bitcoin’s hashprice stands at $47.80/PH/DAY, highlighting continued strain on miners. The total hash rate of the Bitcoin network has dropped from 625 exahashes per second (EH/s) to 581 EH/s since the halving, indicating reduced mining activity.
Miners have responded to these challenges by scaling back operations, evident from increased selling activities. Marathon Digital, a prominent player in Bitcoin mining, notably sold 1400 BTC in the first ten days of June, a significant uptick compared to 390 BTC sold throughout May. Aggregate miner sales on June 9 alone totaled 4200 BTC across exchanges and over-the-counter desks, marking the highest daily volume since March.
Looking ahead, Marathon Digital announced its diversification into mining Kaspa, an alternative proof-of-work cryptocurrency network, which has yielded $16 million in returns since September. These developments underscore the evolving landscape of Bitcoin mining amidst shifting profitability dynamics.
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