Bitcoin mining is still a profitable activity, but its profitability is under pressure due to the decline in the price of the cryptocurrency and the increase in the hash rate of the network. This was stated by Arcane Research analysts.

They noted that since the beginning of the year, the cash flow from mining 1 BTC has been in a sideways trend. After deducting electricity costs (at a rate of $0.05 per kWh), the Antminer S19 device brings in about $31,000 per bitcoin, taking into account the price of a $39,000 coin. The revenue from the operation of the less efficient Antminer S9 is already approximately 1 $13,000 per BTC.

The most important factor for the profitability of mining is the price of crypto money, which has dropped from $ 46,000 to around $ 40,000 since the beginning of the year. The network hash rate, which increased by 15% in this period, also seriously affects profitability, experts say. he remembered.

The high profitability of bitcoin mining in the fall led to a massive increase in capacity that will be operational in the coming months. Arcane Research is confident that this will inevitably lead to an increase in the hash rate and hence the complexity of mining.

“If we do not see a significant increase in bitcoin price in the near future, mining profitability may come under more pressure as the hash power increases,” the analysts said.

According to them, the decrease in the demand for mining equipment indicates a decrease in the profitability of cryptocurrency mining. Since December, the price of 1 TH/s for the most modern models of ASIC miners with energy efficiency above 38 W/TH has dropped by about 20% to $80.

Recall that Arcane Research concluded that Marathon Digital stock was overvalued by the market on expectations of multiple increases in the company’s hash rate.