Electricity Costs Are A Big Concern For BTC Miners

Summary

“The mining of bitcoin is directly tied in with electricity. As the price of BTC has fallen, so has the revenue for miners, and finding cheaper electricity is one of the best ways to increase profit margins. Back in 2021, miners were seeing revenues of $500 per MWh of energy that was used in an energy-efficient Antminer S19. However, this figure has dropped to less than half of its 2021 numbers as the price of bitcoin is trending in the low $21,000s. To maintain such margins, the miner would have to reduce electricity costs by about half to around $20.Miners look to cheaper energy sources | Source: Arcane ResearchThis search for cheaper energy options had seen miners move into countries such as Russia for their operations.

Mostly, the public bitcoin miners have suffered massive blows due to the decline in bitcoin prices. In a bid to reduce their operation costs, bitcoin miners are now looking toward more energy-efficient machines. That is if they were not able to find cheaper energy options. One of the machines that have grown in popularity among the miners is the Antminer S19 series. However, even this does not provide the cost-saving that miners would require to keep going.”

Source: https://bitcoinist.com/energy-costs-are-increasing-concern-for-bitcoin-miners/