Bitcoin Miners Grapple With Unprecedented Low Hashprice

On Aug. 7, 2024, bitcoin's price moved within a 24-hour range between $55,742 and $57,607. This lower price bracket has significantly reduced bitcoin mining revenue.

Bitcoin mining revenue has been considerably impacted by the lower price bracket, which began in early August. As a result, the estimated daily value of 1 petahash per second (PH/s), also known as the hashprice, has dropped significantly.

According to data from Luxor’s hashrateindex.com on Wednesday at 10 a.m. EDT, the hashprice, or the projected daily value of 1 PH/s, is $39.83 per petahash. This marks a slight recovery from two days earlier when the hashprice dipped below the $36 threshold, reaching a level that is unprecedented in bitcoin’s history and putting immense pressure on miner profits.

Even before bitcoin’s value dropped to the $55K range, mining profits were already facing significant strain. July was the least profitable month of 2024 so far for bitcoin miners, and over the past seven days, they have generated a modest $163.77 million in revenue during August. Additionally, a mere $3.14 million in onchain fees contributed to the total revenue for the first week of the month.

According to the latest insights from theminermag.com, a hashprice of $38 falls below the breakeven point for fleet hashcost. “A hashprice of $38/PH/s is already lower than the fleet hashcost breakeven point for many publicly traded mining companies, although some of them have raised capital via extensive equity financing,” the publication stated this week.

At present, bitcoin miners face a complex challenge involving a combination of low onchain fees, depressed BTC prices, and an all-time high mining difficulty. The total network hashrate remains above the 600 exahash per second (EH/s) range, and an estimated difficulty reduction is on the cards for Aug. 14, 2024.

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