New report released by BitMEX Research found that about 1.3 million Bitmain S9 miners shut off since November as Bitcoin hashrate dropped by 31%. The revenue of the Bitcoin mining industry revenue decreased from approximately $13 million daily at the start of November to around $6 million daily at the start of December. Prior to the recent crash in prices, the profit margins of Bitcoin miners was around 50% and have now fallen to around 30%.
BitMEX notes that although the mining industry is highly profitable when only considering electricity costs, when all the other costs (capital investment in the machinery, maintenance costs and building costs) are considered, “the recent price crash is likely to have sent almost all the miners into the red.” BitMEX also speculates that as the higher cost miners switch off their machines first, the average electricity cost of active miners should have fallen considerably. (Source: BitMEX Research)