Miner Weekly: A Record Low for Mining Revenue?
Bitcoin mining difficulty is expected to jump by 13% on Monday
Brace for impact
A few media outlets reported on the upcoming bitcoin difficulty adjustment, which is expected to be up by ~13%. But this isn’t just another all-time high difficulty that will squeeze mining margins in the coming weeks.
Bitcoin’s daily mining revenue per PH/s is currently around $80. If the difficulty rises 13% on Monday and bitcoin’s price stays at $19.5k, the daily revenue would decrease to $70 per PH/s.
That would cause mining companies to mine at all-time low revenues on a daily basis, even lower than what we saw during the summer following the May 2020 halving. Unless bitcoin’s price breaks the $20,000 barrier, those who employ older generation machines or have bloated mining operations will face an even tougher time ahead.
Public mining companies already had very squeezed gross margins in Q2 than in Q1. The numbers for Q3 are likely much worse. We will find out soon after more companies disclose September production updates next week. Stay tuned!
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