Bitcoin mining cash flow has dropped 80% from its peak in November 2021 to levels two years ago. Analysts at Arcane Research pointed to this.

Why? #bitcoins Did miners have to sell their valuable bitcoins?

Cash flows are falling. The Antminer S19 is making just $13,000 per BTC – an 80% drop from its November peak (power price of $40 per MWh). https://t.co/BxVMUP4MVR pic.twitter.com/PHG4HSXhPC

— Jaran Mellerud (@JMellerud) June 22, 2022

Experts noted that the latest generation ASIC miner Antminer S19 brings in about $13,000 per BTC mined at an electricity cost of $40 per MWh. The outdated Antminer S9 works at the current price of cryptocurrencies at a loss.

Public mining companies often have access to lower power rates. Analysts also noted that the equipment fleet consists of highly efficient devices.

Despite this, in May miners sold 100% of the bitcoins mined in a month. Since the beginning of the year, they have been selling between 25% and 40% of the cryptocurrency produced.

According to Arcane Research experts, the pressure on mining profitability in addition to falling prices has been exerted by the increase in the bitcoin hashrate and the consequent complexity. Computing power has increased amid significant investments in new hardware.

According to Glassnode, on June 11, the hash rate (corrected by the 7-day moving average) peaked near 231 EH/s. By June 21, the rate had dropped sharply to 207 EH/s.

A 10% reduction in network capacity within a few days can result from disconnecting devices that are no longer profitable.

In May, the revenue of miners of the first cryptocurrency fell by 22% from April to $ 906 million.

Recall that Arcane Research analysts allowed a further drop in bitcoin price to $10,350.

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