Operational Bitcoin Miners See a Jump in Profitability

The Bitcoin mining industry is currently facing the greatest hash-power migration in history. Due to the latest crackdown by China, some of the leading BTC mining companies are planning to shift their operations to other locations.

Glassnode, a leading on-chain analysis platform, recently published its weekly on-chain report and mentioned that nearly 50% of Bitcoin miners are currently offline. However, operational BTC mining companies have seen a surge in revenue during the last few days.

Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term touched its peak in April 2021 when Bitcoin reached the price level of $60,000. This occurred as Miners saw an income of approximately $60 million per day during April.

“The daily aggregate revenue is now around $25 million to $30 million per day but is shared amongst a smaller pool of miners. Same daily BTC issuance, fewer competitors share the spoils. This implies that following the latest difficulty adjustment, operational miners are incurring the same OPEX expense, but are seeing profitability rise almost 2x, approaching similar profitability levels to back in April,” Glassnode mentioned.

Chinese Bitcoin miners increased selling pressure in June 2021 due to a sharp increase in logistic expenses incurred by the mining companies in relocation. But, the latest data shows that the migration is not having a negative impact on the operational BTC miners.

Bitcoin Mining Metrics

Glassnode highlighted a significant Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term jump in different Bitcoin mining metrics over the last few days as a result of China’s mining crackdown. “When a significant proportion of hash-power comes offline, blocks will be mined at a slower pace until the difficulty adjusts downwards. This week, the average block interval on a 24-hr average basis spiked to a short-term high of 1,958s (32.6mins), over 226% longer than the 600s target block-time. This event was only temporary on 28-June, with average block-times since recovering to an average between 800s to 900s,” Glassnode added.

Yesterday, IBC Group announced that it has decided to close its Bitcoin and Ethereum mining operations in China.