Up to 20% of Bitcoin mining rigs now operating at a loss

Up to 20% of global Bitcoin mining equipment is now operating at a loss amid worsening profitability, according to a report from CoinShares. The report states that the hash price, a metric representing the expected daily revenue per unit of hash power, has fallen to a range of $28 to $30 per PH/s. This has pushed approximately 15% to 20% of all mining rigs below their break-even point. As a result, mining companies using mid-generation hardware like the Antminer S19 XP face negative cash flow unless they can secure electricity for under $0.05 per kWh. The report also noted that the average mining cost for publicly traded miners rose to around $79,995 per BTC in the fourth quarter of last year. Signs of miner capitulation have also emerged, including three consecutive downward difficulty adjustments. In response to sustained pressure on profitability, some miners are exploring a pivot into the AI and high-performance computing (HPC) sectors.