The meteoric drop in GPU prices opened up a small window of opportunity
for small-time miners to procure a piece of more powerful and efficient
mining equipment.
As a direct result of falling Bitcoin (BTC)
prices, total revenue earned by miners in transaction fees and mining
rewards dropped to its one-year lows at nearly $15 million on July 4.
However, a concurrent fall in graphic cards or GPU prices is set to help
miners offset their operational costs amid an ongoing bear market.
Bitcoin
mining revenue fell 79.6% over a period of 9 months, ever since
reaching an all-time high of $74.4 million on Oct. 25, 2021. In
addition, a global chip shortage and the coronavirus pandemic shot up
prices of the most important part of a mining rig — the graphics
processing unit (GPU) — further impacting the miners’ bottom line.
With card manufacturers resuming operations across the world, GPU prices have seen a massive decline with some cards selling for below MSRPs. In May alone, GPU prices dropped
over 15% on average as supply exceeded the market demand. Moreover, the
recent influx in GPUs has forced sellers on the secondary markets to
bring down their exorbitant prices on used mining rigs.
Cointelegraph
previously reported that several public Bitcoin miners are
well-positioned to survive the prolonged bear market as the low revenue
continues to sustain the operational costs of the mining facilities. As
shown below, Argo, CleanSpark, Stronghold, Marathon and Roit are some of
the miners with a stable mining revenue to operational cost ratio — a
fair indication of good health.
Moreover,
the meteoric drop in GPU prices opened up a small window of opportunity
for small-time miners to procure a piece of more powerful and efficient
mining equipment. Coupled with lower hash rate requirements of 203.6
exa hashes per second, miners now require lower computing power to
successfully mine a block on the Bitcoin blockchain.
Related: Marathon Digital keeps on mining despite BTC price slump
Despite
the evident drop in mining revenue, Marathon Digital Holdings revealed
to continue stacking BTC via mining while being “fairly well insulated
and well-positioned.”
Speaking to Cointelegraph, Charlie
Schumacher, VP of corporate communications at Marathon Digital, shared
insights on their overall operations:
“For reference, in
Q1 2022, our cost to produce a Bitcoin was approximately $6,200. We also
have fixed pricing for power, so we are not subject to changes in the
energy markets.”
source link : https://cointelegraph.com/news/global-gpu-price-drops-to-compensate-for-falling-bitcoin-mining-revenue
