Miners had to sell all the bitcoins mined in May
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Miners had to sell all the bitcoins mined in May – profitability has plummeted by 80% since November

Due to Bitcoin’s sharp drop in value, industrial miners were forced to change their financial strategy and sell all 100% of the mined cryptocurrency in May. The profitability of mining has dropped significantly – the bitcoin rate has approached the cost of mining one coin. Obsolete ASIC devices began to work at a loss.

    Image source: arcane.no

Image source: arcane.no

The analysis company announced changes in the financial model of industrial mining Arcane Research: Publicly traded bitcoin mining companies have sold 100% of crypto assets acquired in May. For comparison: In the first 4 months of 2022, 20% to 40% of bitcoins were sold. The researchers note that public mining companies produce about 20% of global hashrate, but their actions reflect the strategy of the entire industry. And in June, along with all the Bitcoins mined, miners are expected to start selling the previously accumulated reserves.

According to Arcane, mining profitability has now returned to 2020 levels – this has been facilitated by the increase in complexity and the decline in prices of the largest cryptocurrency. From the November 2021 highs, the profitability of the Antminer S19 ASIC device has dropped by 80%, while the outdated Antminer S9 model has already started to operate at a loss. Today, Antminer S19 reports a net profit of $13,000 per bitcoin mined at a price of $40 per 1MWh of electricity.

Industrial miners have around 46,000 bitcoins in stock, and if a decision is made to sell them, it may contribute to a further decline in the largest cryptocurrency’s listings. Canadian mining company Bitfarms, for example, sold 3,000 bitcoins in the last week alone, making about $62 million — the money was used to pay for new equipment and pay off loans.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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