Efficient Miners Shine as Bitcoin & Hashprice Drop

Miners using older, less-efficient hardware have been put to the test with Bitcoin’s recent price action. The combination of the Bitcoin price drop and marginally higher mining difficulty has caused Antminer S19j Pro’s to fall below ‘breakeven.’

On the other hand, miners with the most efficient machines in the market continue to operate profitably. S21 Pro’s and S21 XP’s at $0.078/kWh are mining Bitcoin with a breakeven of $53,000 and $47,000 respectively.

Bitcoin’s “Hashrate” is often looked at as a good indicator into the overall healthy and security of the Bitcoin network. However, as miners, we look at hashrate through a different lens. Moreover, we specifically look at the ‘growth rate’ or ‘delta’ of hashrate.

One of our core theses for the next three years is that the Bitcoin price will outpace growth in hashrate. When this happens mining profitability increases. Over the past year hashrate has increased by ~36%. This is down significantly from 2023 in which the hashrate grew by more than 100%.

Hashrate Growth will continue to decline for the following reasons:

• Law of Large Numbers

• Diminishing Marginal Improvements in Mining Hardware

• Physical Energy Production as the Bottle Neck

• AI/HPC as an Alternative Way to Monetize Energy

Historically, growth in mining difficulty has eaten into the profit margins of Bitcoin miners. But that factor is going to be less relevant during this halving epoch.

Miners that position themselves now will capture the entirety of Bitcoin’s run from $100,000 to $1,000,000 — and it will be near impossible for mining difficulty to grow at the same pace.

In Q3 2024 we published a free report breaking down this idea in detail. Click here to read the report.

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Blockware’s Mining-as-a-Service enables you to start mining Bitcoin, without lifting a finger. Blockware handles everything, from securing the miners, to sourcing low-cost power, to configuring the mining pool – they do it all.

With multiple data centers across the US, Blockware is the most reliable mining partner in the industry.

Click here to check out our Marketplace where you can see real-time analytics on our miners, and make an immediate purchase using BTC or fiat.

If you’d like a more hands-on mining experience, fill out this form on our website. One of our Account Executives will be in touch and they can walk you through our entire product and service offerings! The table below provides a full pricing list for all the ASICs available through Blockware at this time. For those seeking to purchase ASICs in bulk (with or without hosting), contact sales@blockwaresolutions.com or reach out here.

All content is for informational purposes only. This Blockware Intelligence Newsletter is of general nature and does not consider or address any individual circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal, business, financial or regulatory advice. You should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.