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Author: Admin | 2025-04-27
2021, reality has now hit miners in the face, as their margins have immensely compressed.At its peak in October 2021, the most energy-efficient mining machine on the market printed a gross margin of 88%, assuming an electricity price of $60 per MWh. In other words, a miner with an okayish electricity price could produce 1 bitcoin for energy worth only 0.12 bitcoin.Change in bitcoin mining gross margin between October 2021 and October 2022 | Source: Hashrate IndexWe see that the margins have evaporated over the past year. Machines that operated at close to 90% gross margins at the peak in 2021 now barely scrape by at 30% - 40% gross margins. A 30% gross margin may not sound too bad, but remember that this margin should cover all non-energy costs like salaries and administration.The Antminer S19j Pro was the most energy-efficient model on the market in October 2021, then operating at 88% gross margins. It has now seen its gross margin decline to 38%. The Whatsminer M30s+ is relatively energy efficient and operates at a 28% gross margin at a $60 per MWh energy price. The majority of Bitfarms' fleet consists of that machine.The Antminer S19 XP is the most energy-efficient machine on the market, except for the hydro-cooled versions. Many publicly traded miners made enormous orders of this machine, and the first batches were delivered in July 2022. Miners using this machine are still making decent margins of 55%. One thing is certain – these machines will not be
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