Mining has become unprofitable for most - costs exceed revenues

Recently, Financial Times journalists conducted a survey of miners, both companies and individuals, in order to find out how profitable the mining is now. The course of Bitcoin and other cryptocurrencies has significantly decreased over the past few months, so the question is really relevant.

As it turned out, the cryptobusiness is not going too well. For example, the British company Bladetec, which was planning to build the largest Bitcoin mining company in the UK in March, said that the project was frozen due to the unstable situation on crypto markets.

Chinese mining equipment manufacturers also have problems, as reported by Vedomosti. So, three large companies, Ebang, Canaan and Bitmain, which planned to hold an IPO on the stock exchange in Hong Kong, canceled this decision.

The company Nvidia, which opened the whole division, which was engaged in the development of video cards intended for mining, decided to close this division. According to experts, the break-even level of mining in most regions is about $ 5000 per bitcoin. But since the cost of cryptocurrency is about $ 1,000 lower, many miners are suffering losses.

According to the analytical company Fundstrat, since September about 1.5 million bitcoin mining farms have been disabled. Some companies specializing exclusively in cryptocurrencies (for example, Bitfury) have begun to invest in related areas. In addition to Bitfury, the Chinese company Bitmain and a number of other organizations did the same.

However, not all miners suffer losses - those of them who are located in regions with cheap electricity still continue to work, making a profit. Well, since the dynamics of the cryptocurrency market in the current conditions is difficult to predict, the companies themselves have taken a wait.