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On May 11, the Bitcoin network suffered the third block reward halving, which had reduced the 12.5 BTC reward to 6.25 coins following the event. It’s been nearly a week later, and data from mining rig profitability websites shows that more than 45 older generation devices are not profitable right now at today’s bitcoin exchange rates.
After May 11, many older generation Bitcoin mining platforms have bit the dust
A recent research analysis by 8btc reporter Vincent He and the cryptocurrency mining operation F2pool, indicates that around 45 older mining devices were shut down overnight since the reward halving. Statistics from the web portal Asicminervalue.com also indicate that the 45 miners estimate is based on the electricity price of 0.35 Chinese yuan per kilowatt hour (kWh) or $ 0.049 USD.
The best mining device in the entire series of “ unprofitable ” mining rigs would be Bitmain’s Antminer S11 (20.5 TH / s), which still loses $ 0.09 per day at $ 0.049 per kWh. Other machines that aren’t making profits at this rate include Bitfury Tardis, Antminer S9 SE, GMO Miner B2, Innosilicon T2 Turbo, Bitfily Snow Panther B1, Canaan Avalonminer 921, and the popular Antminer S9. Data shows that at $ 0.049 per kWh, Bitfury’s B8 released in 2017 with 49 TH / s suffers a profound loss of more than $ 3 per day.
According to Vincent He, “with an electric charge of 0.3 Chinese yuan per kWh, the electric charge of an S9 can represent 140% of the entire cost.” Chinese mining operation F2pool states:
Now, only when the price of bitcoin rises to $ 15,000 can Antminer S9 cover the cost. In the past, even if there was a mining disaster and the price drop of the mining machine, someone would still have bought the S9. Most of the recipients are the owners of large mining companies. When the bitcoin price recovers, they can mine it for themselves or sell it to others to earn the difference.
After the popular mining plant once fueled 70% of the Bitcoin Hashrate, the Antminer S9 series becomes a tough sell
Two days ago, the crypto community was finally able to observe the loss of the SHA256 hashrate that followed the reward halving on May 11. On May 11, the overall BTC hashrate was 121 exahash per second (EH / s) and on May 15, 2020, the overall hashrate is around 110 EH / s. However, Fork.lol’s 12-hour interval statistics show that the hashpower may be even lower than today. These statistics would indicate that a number of operations exploiting older generation mining platforms have likely fallen off the map.
Now everyone knows that in places like China, Central Asia and Iran, some miners can get free electricity or pay just $ 0.02 per kWh. So taking the metrics from Asicminervalue.com and changing the electricity cost to $ 0.02 per kWh indicates that only eight mining rigs are unprofitable at that energy rate. Mines that cannot earn at 2 cents per kWh include Whatsminer M3X, Avalonminer 741, Whatsminer M3, Antminer S7-LN, Antminer S3, Antminer V9, Antminer S7, and Antminer S5. These eight machines are losing between $ 0.09 and $ 0.19 per day respectively at current BTC exchange rates.
Vincent He’s report also notes that the well-known Antminer S9 has also lost value in secondary markets almost overnight. The Chinese reporter claims that $ 100 has been removed from most people’s lists and that an older generation Antminer S9 will sell for 100 Chinese yuan (about $ 14). Years ago, S9s with 13 TH / s or more accounted for over 70% of the SHA256 hashrate. The report also highlights that the owner of a Sichuan Province mining operation sold his small farm with 8,000 mining rigs and six transformers about seven days before the halving event. The owner of 8,000 mining rigs, Zhou Wenbo, told the columnist that the buyer was unwilling to take his older generation Antminer S9, Avalonminers and Innosilicon Terminator 2 machines.
If the data is changed again at $ 0.05 per kWh, there are a large number of next generation miners who are still very profitable at today’s exchange rates. This includes Antminer S19 Pro (110 TH / s), Antminer S19 (95 TH / s), Whatsminer M30S (86 TH / s), Antminer S17 (73 TH / s) and Whatsminer M31S (70 TH / s). All of these mining devices make between $ 6-15 per day at $ 0.05 per kWh.
What do you think of the large number of unprofitable old generation miners? Let us know in the comments below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Asicminervalue.com, Ebay, Fork.lol, Blockchain.com
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