TheMinerMag reports that the Bitcoin industry may have entered its deepest economic crisis in over 15 years. Large publicly-traded operators are even struggling to maintain profitability due to falling revenue from mining and rising debt.
TheMinerMag’s latest report says that miners in South Africa are working. “harshest margin environment of all time,” as hashprice — the revenue earned per unit of computing power — has fallen from an average of about $55 per petahash per second (PH/s) in the third quarter to roughly $35 PH/s, a level the publication characterized as a structural low rather than a temporary dip.
This deterioration was triggered by a rapid correction of the Bitcoin price (BTCThe price of the, which dropped from its record high around $126,000 to below $80,000 in November.
In these conditions, the cost per hash is an important metric that miners can use. This metric shows how miners efficiently convert capital and electricity into computational output. It also reveals a growing gap between the average operator and those who are most successful.
The data shows that new-generation mining machines now require more than 1,000 days to recoup their costs — a growing concern, given the next Bitcoin halving is roughly 850 days away.
“Balance sheets are reacting” TheMinerMag attributed the recent CleanSpark decision to pay back its entire debt to deteriorating economics. Bitcoin-backed credit line Coinbase’s shift to deleveraging, and the preservation of liquidity is an indication that this industry has shifted in general.
Related: Thirteen years after the first halving, Bitcoin mining looks very different in 2025
Bitcoin mining stocks suffer a blow
A slide in Bitcoin’s price and the pressure it puts on its hash rate coincides with an overall sell-off of traditional markets. This is a double-whammy for publicly-listed mining companies.
The MinerMag’s third-quarter report Flagged A “sharp drawdown in mining equities since mid-October,” Losses are increasing across all sectors.
MARA Holdings, (MARA), has suffered the most. Its closing price on October 15 is down by about 50%. CleanSpark’s shares (CLSK), which have fallen 37% in the past year, are now down 32%. Riot Platforms has also dropped 32%. HIVE Digital Technologies’ (NASDAQ: HIVE) shares have declined 32% over the same period.HIVEThe biggest decline was in October, when the index fell 54%.
Magazine: Bitcoin’s long-term security budget problem: Impending crisis or FUD?
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Source: cointelegraph.com
