Bitcoin miner prices will continue to fall, F2Pool exec predicts

The worth of cryptocurrency mining {hardware} is prone to proceed falling within the close to future amid the continued crypto winter, based on an government at main Bitcoin (BTC) mining pool F2Pool. 

Supporting 14.3% of the BTC community, F2Pool is likely one of the world’s greatest Bitcoin mining swimming pools. On Tuesday, F2Pool released its newest mining business replace.

Specializing in June 2022 BTC mining outcomes, F2Pool’s report famous that almost all of Bitcoin mining firms like Core Scientific have opted to promote their self-mined Bitcoin lately.

Bitfarms, a serious Canadian BTC mining agency, offered 3,000 Bitcoin, or virtually 50% of its total BTC stake for $62 million ito scale back its credit score facility in June.

“I’ve studied virtually 10 publicly traded industrial miners and located that they’re all very truthfully telling everybody that they’re promoting self-mined Bitcoins,” F2Pool’s director of worldwide enterprise growth Lisa Liu wrote within the report. She added that the proceeds are used to fund working bills and to develop capital, in addition to to scale back obligations below tools and facility mortgage agreements.

Liu went on to say that only some publicly traded industrial miners claimed that they’d keep on with their long-standing HODL technique. These included corporations like Marathon, Hut 8 and Hive Blockchain Applied sciences. “Specifically, Hive surprisingly doesn’t have vital debt, nor does it have tools financing for ASIC and GPU tools,” she added.

The chief additionally talked about that the value of application-specific built-in circuit (ASIC) miners has dropped sharply over the previous a number of months. By early June, the value of prime and mid-tier ASIC miners reportedly plummeted 70% from their all-time highs within the $10,000–$18,000 vary.

On the time of writing, Bitmain’s flagship miner Antminer S19 Professional is selling on Amazon within the $4,000–$7,000 vary for used units. A model new gadget apparently nonetheless sells for greater than $11,000.

ASIC costs will proceed to fall even additional, which may set off loads of new miners to exit mining, Liu predicted, stating:

“I believe ASIC costs will proceed to fall though they’ve already dropped quickly since reaching the height. If tools homeowners can not safe energy and capability at a aggressive value degree, loads of newbies who hopped on the hash prepare final 12 months are prone to be thrown off.”

Liu harassed that such a scenario can be the “worst-case situation” as F2Pool needs to see “each miner undergo this chilly winter.”

Associated: Crypto miners in Texas shut down operations as state experiences excessive warmth wave

As of mid-July, Bitcoin mining income dropped practically 80% over a interval of 9 months, after reaching an all-time excessive of $74.4 million in October 2021. The sharp decline triggered an enormous drop within the value of graphics processing items, which lastly turned extra inexpensive after the worldwide pandemic-caused chip scarcity.

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