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Bitcoin mining revenues have fallen below $1 billion dollars per month for the first time in the past nine months
Miner Revenue is a
function of both price and difficulty. Difficulty has continuously moved up – from 14.5 trillion to 31.25 trillion since August 2021 – putting pressure on the miners who may need to cover their bottom line. As for last month's disappointing revenues, Bitcoin saw its first big price low in a long time at around $25,400, pushing the block reward (in USD) even lower, while difficulty increased 4.6%.
Those with less powerful machines or higher electricity costs will begin to become priced out of the market, such as Antminer S7 and S9s. Mid-tier miners such as S19s remain profitable under certain assumptions, but are certainly feeling the pain as we analyzed two weeks ago.
Pricing miner revenue in Bitcoin can give a better perspective on the long-term outcome. As long as a person or business can cover the costs of running and aren't doing so at a premium to the market, miner revenue in BTC can keep the focus on the
long-term.
Mining is a long term game with short-term expenses, those that can stay afloat and make it through the bear market will be rewarded in the end.
-Mitch Klee
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