According to TheMinerMag, the Bitcoin mining industry is in what might be the worst economic recession in its 15-year history, with even large listed operators struggling to interrupt even because of falling mining revenues and rising debts.
In its latest report, TheMinerMag said miners are operating within the “hardest margin environment ever” because the hash price – revenue per unit of computing power – fell from a mean of about $55 per petahash per second (PH/s) within the third quarter to about $35 PH/s, a level the publication described as a structural low reasonably than a brief decline.
The deterioration followed a pointy correction in Bitcoin (BTC) price, which fell from a record high near $126,000 in October to below $80,000 in November.
Under these conditions, cost per hash has emerged as an insightful metric for miners. It shows how efficiently miners convert electricity and capital into pure computing power, highlighting a growing gap between average operators and just probably the most efficient survivors.
The data shows that new-generation miners now take greater than 1,000 days to recoup their costs – a growing problem considering the subsequent Bitcoin halving is around 850 days away.
Bitcoin mining costs with large listed miners. Source: TheMinerMag
“The balance sheets are responding” to the deteriorating economic situation, TheMinerMag said, pointing to CleanSpark's recent decision to totally repay its Bitcoin-backed credit line with Coinbase as an indication of the industry's broader shift toward deleveraging and preserving liquidity.
Bitcoin mining stocks are having a tricky time
The drop in Bitcoin prices and the resulting pressure on the hash rate coincided with a broader sell-off in traditional markets, making a one-two punch for publicly traded mining corporations.
The MinerMag third-quarter report pointed to a “sharp decline in mining stocks since mid-October,” with losses accelerating across the sector.
MARA Holdings (MARA) was the toughest hit, down about 50% from its Oct. 15 closing high. CleanSpark (CLSK) is down 37% over the identical period, while Riot Platforms (RIOT) is down 32%. Shares of HIVE Digital Technologies (HIVE) suffered the most important decline, plunging 54% from their peak in October.
