According to the hashrate index, the hashpris, a key metric used to measure miners’ revenue, is currently hovering near the five-year low. This reminds us of how difficult it has become to mining.
Simply put, metrics are the revenue that miners can expect per unit of computing power, denoted by PETAHASH (PH/S). This may be named in US Dollar or BTC, but is most commonly cited in USD for real comparisons.
Currently, Hashpris sits at a pH of $44.00, slightly above the low in August 2024. Currently, Bitcoin trades around $84,000.
Miners’ revenues have been declining despite the higher prices of BTC. This paints a disastrous picture of the entire mining industry after half of the recent events cut their rewards in half. Increased competition, increased mining difficulty, reduced trading revenues and a surge in energy costs added more pressure to revenue.
But that’s not all bad. At a PH/s level of around $44.00, depending on the type of mining machine used by miners, miners could still be break-even, although far from mine driving in 2021.
Looking ahead, geopolitical uncertainty such as worsening market conditions, stagnant Bitcoin prices, and potential tariffs that affect mining operations could create even more headwinds for the industry.
This is reflected in the performance of the Valkyrie Bitcoin Miners ETF (WGMI). This has been a 50% decline since the start of the year, with BTC down by about 10%, highlighting the difficult environment facing the mining sector.
It makes sense that miners are increasingly pivoting to other revenue streams, such as reallocating the computing power of artificial intelligence.
Read more: Bitcoin mining stock plummets as a revenue crater amid market genocide
