Mining margins are on the rebound

Chris Dannen

By Chris Dannen

Revenues for Bitcoin miners dropped to their lowest point in 19 months this past February, a 10% month-over-month decrease since 2019 began. The good news: gross margins, which reached their nadir of 32% in January 2019, grew to 39% in February. Meanwhile, hashrate has been growing since December 2018. Talk of a miner death spiral may have been overblown; Bitmain's newest miner, the S15, has sold out twice over, with a new batch planned for April.

Bitcoin Hash Rate, Miner Margins Shift Back into Growth
"Bitcoin miner revenues last month fell to the lowest intake since August 2017. To make matters slightly more difficult, miners running optimal equipment and who have secured wholesale electricity prices have seen their gross margins squeezed requiring a massive deployment of hash power in order to stay afloat. But this month did see a small uptake, the first time since Bitcoin's price boom."

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