The Decline of Older Bitcoin Mining Rigs: How New Technology is Surpassing the Past
In recent times, it has been observed that older bitcoin mining rigs are no longer generating the same level of income they once did before the halving event. This can be attributed to the hashprice, which currently stands at around $0.056 per terahash per second (TH/s) per day. On April 25th, Luxor Technologies reported a significant decrease in the prices of application-specific integrated circuit (ASIC) bitcoin mining rigs, specifically highlighting two models that experienced price reductions ranging from 28% to 35%.
The Evolution of Bitcoin Mining: New Technology Outpacing the Old
Over the past week, Bitcoin.com News has been reporting on the hashprice, which essentially represents the projected earnings from 1 terahash per second (TH/s) or 1 petahash per second (PH/s) per day. Essentially, the hashprice serves as an indicator of the daily earnings that an ASIC mining rig can expect for each terahash of computing power deployed on the Bitcoin network.
It acts as a daily rate of earnings for these devices’ computational efforts. Based on current hashprice values, data suggests that there are a total of eight proof-of-work (PoW) crypto assets that currently yield higher mining profits compared to those using the SHA256 consensus algorithm. These algorithms include Kheavyhash, Blake3, Scrypt, Eaglesong, Ethash, Randomx, Cuckatoo32, and Blake2B-Sia.
The leading models in today’s market are the newly launched bitcoin (BTC) mining rigs such as Bitmain’s S21, S21 Pro air-cooled units, and the S21 hydro unit. Additionally, Microbt’s M63S, M66S, and M60S models rank among the top five bitcoin miners for daily earnings as of April 26, 2024. Specifications reveal that Auradine’s AT2880 air-cooled and the AI3680 – immersion single-phase units also remain profitable with the current hashprice value.
These models, along with Bitmain’s T21 and Microbt’s M60, manage to generate significant profits at an electricity cost of $0.12 per kilowatt-hour (kWh). However, profitability calculators indicate that much older models, like the Antminer S9 with 14 TH/s and an electricity cost of $0.04 per kWh, would operate at a loss, with daily deficits reaching $2.53. Publicly listed mining companies and large self-hosted and hosted fleets benefit from the use of newer machines and reduced operational expenditures (OPEX).
In contrast to the newer ASICs produced by Bitmain and Microbt, older models are currently available at discounted prices, as highlighted by Luxor Technologies. Specifically, Luxor Technologies noted that since September 2023, the prices for Bitmain Antminer S19j Pro models and Microbt M30S+ have decreased by 28% and 35%, respectively. As the bitcoin mining landscape continues to evolve, profitability will increasingly favor newer ASIC models over their predecessors.
With advanced technology offering improved efficiency and higher hashrates, these newer units have become instrumental in maintaining competitive earnings. While some anticipated a significant decline in exahash per second (EH/s) from the network, the latest data collected at 7:10 p.m. EDT by hashrateindex.com shows that the hashrate remains exceptionally high at 640 EH/s. For now, the lower hashprice has not caused a significant departure of hashrate from the Bitcoin network.
What are your thoughts on the decrease in hashprice and the smaller profits seen by older mining rigs? Share your opinions in the comments section below.
