Bitcoin’s mining revenue per TH/s recovers to mid-May levels

Quick Take

• Bitcoin’s daily mining revenue per TH/s has recovered to $0.27 — the same level when bitcoin was around $45,000 in mid-May.
• The global hash rate is unlikely to bounce back to its all-time-high anytime soon, meaning there is less competition among miners who are still online.

Thanks to the record difficulty drop, bitcoin’s mining revenue per terahashes second (TH/s) of computing power has recovered to the same level when bitcoin’s price was around $45,000 in mid-May.

The Block’s Data Dashboard shows that the daily mining revenue per TH/s has climbed up to $0.27, after bitcoin’s mining difficulty recorded its largest ever drop by nearly 28% on July 3.

Data from Bitinfocharts has a slightly different estimate on the daily mining revenue per TH/s, putting it at around $0.30. But it’s showing a similar trend.

Bitcoin’s record difficulty drop was a direct result of China ordering power plants to cut off the energy supply to bitcoin mining facilities over the last month. About 90 million TH/s of computing power on the bitcoin network had gone offline since mid-May, accounting for about 50% of the network’s total hash rate.

But for bitcoin miners who have been able to stay online all the while, it means their daily shares of Bitcoin’s block rewards have increased proportionately to the difficulty drop. 

When China materialized the efforts to crack down on bitcoin mining early June, The Block explained that the total vacant capacity offered by bitcoin mining hosting firms outside China is insufficient to fulfill all the demands from Chinese bitcoin miners who will be looking for hosting spots.

Following the shutdown orders in China’s Xinjiang and Sichuan provinces, the secondhand market has been flooded with a spiking supply of millions of bitcoin ASIC miners that have been unplugged in recent weeks. The crackdown order has also affected Ethereum and other crypto miners, who have been dumping used graphic processing units on secondhand market places.

Therefore, industry experts are not expecting bitcoin’s hash rate to recover to its all-time-high around 180 million TH/s anytime soon, giving more leeway to current miners in the months ahead.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.