Bitcoin ASIC miner prices hovering at lows not seen in years

Bitcoin (BTC) ASIC miners — machines optimized for the only real function of mining Bitcoin — are at the moment promoting at bottom-of-the-barrel costs not seen since 2020 and 2021, in what’s being considered as one other signal of a deepened crypto bear market.

According to the most recent information from Hashrate Index, essentially the most environment friendly ASIC miners, these producing a minimum of one terahash per 38 joules of vitality, have seen their costs fall 86.82% from Could. 7, 2021 peak of $119.25 per terahash right down to $15.71 as of Dec. 25.

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Miners in these class embrace Bitmain’s Antminer S19 and MicroBTC’s Whatsminer M30s.

The identical assertion holds true for the mid-tier machines, with costs now averaging out at $10.23 after falling a large 89.36% from its peak worth of $96.24 on Could. 7, 2021.

Nevertheless, the least environment friendly machines, ones that require greater than 68 Joules per terahash, are actually priced at $4.72, a 91% drop from their peak worth of $52.85. The final time it was priced close to this was round Nov. 5, 2020.

*Bitcoin ASIC Miner Worth Index for machines with various ranges of effectivity. Supply: Hashrate Index.*

The autumn in costs has largely been attributed to massive Bitcoin mining firms which have struggled to stay worthwhile all through the bear market, with many both submitting for Chapter 11 chapter, taking up debt or promoting their BTC holdings and tools with the intention to keep afloat.

Among the many corporations to have finished that embrace Core Scientific, Marathon Digital, Riot Blockchain, Bitfarms and Argo Blockchain.

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However the steep worth fall has been met with some eager consumers. Amongst these embrace many Russian-based mining amenities like BitRiver, that are capable of capitalize on comparatively low electrical energy prices, with some up-to-date {hardware} able to mining 1 BTC at about $0.07 per kilowatt-hour within the energy-rich nation.

Whereas it’s laborious to foretell what worth course ASIC miners will head towards subsequent, Nico Smid of Digital Mining Options pointed out in a Dec. 21 tweet that ASIC miner costs bottomed at Bitcoin’s final halving cycle in Could. 11, 2020 and moved up aggressively shortly after — one thing which might play out in Bitcoin’s subsequent halving cycle which is anticipated to happen on April 20, 2024.