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A small window of opportunity was created by the dramatic drop in GPU prices for small-time miners who wanted to purchase more powerful, efficient mining equipment.

Due to falling Bitcoin ( BTC), prices, total revenue from miners in transaction fees/mining rewards fell to its lowest level in a year at almost $15 million on July 4. In an ongoing bear market, miners will be able to offset operational costs by a parallel fall in GPU or graphic card prices.

Over a nine-month period, Bitcoin mining revenue dropped 79.6%. This is despite reaching an all time high of $74.4million on Oct. 25, 2021. A global shortage of chips and the coronavirus pandemic pushed up the prices of the most critical part of a mining machine — the graphics processing units (GPU), further impacting miners’ bottom lines.

The global resumption of card manufacturing operations has seen GPU prices drop dramatically. Some cards are selling below MSRPs. GPU prices fell by more than 15% in May, as the supply outstripped the demand. The recent surge in GPUs has caused secondary market sellers to lower their exorbitant prices for used mining rigs.

Cointelegraph reported previously that many public Bitcoin miners are well-positioned for the long bear market, as low revenue continues to support the operating costs of the mining operations. Below, you can see that Roit, CleanSpark and Stronghold have stable mining revenue. This is a good indicator of their health.

The dramatic drop in GPU prices has opened up small opportunities for small-time miners who want to purchase more powerful and efficient mining hardware. Miners require less computing power to mine blocks on the Bitcoin blockchain due to the lower hash rate of 203.6 exahashes per second.

Marathon Digital Holdings, despite the apparent drop in mining revenue revealed that they continue to stack BTC via mining while being “fairly insulated and well-positioned.”

Charlie Schumacher, VP Corporate Communications at Marathon Digital, shared his insights with Cointelegraph about their overall operations.

“For comparison, the cost of producing a Bitcoin in Q1 2022 was $6,200. We have also fixed power pricing so that we are not affected by changes in energy markets.

The post Bitcoin mining Profits Force GPU Prices to Drop first appeared on The Daily Encrypt.



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Angie Byrd