Bitcoin Miners Face Revenue Crunch as BTC Tests Key Support

• The market sentiment was dampened just as the important $60,000 support level was being tested.
• Just one month ago, the projected daily return for 1 terahash per second of hashing power was $0.039. On Tuesday, it hit a new low of $0.028.

Along with Bitcoin’s price drop to $62,000, on-chain activity has been poor and revenue for BTC miners have hit an all-time low. Given that Bitcoin is still controlled by miners and mining pools, which controls more than $110 billion, this income loss is making investors anxious about possible sell pressure.

Just one month ago, the projected daily return for 1 terahash per second of hashing power was $0.039. On Tuesday, it hit a new low of $0.028. As a point of reference, the projected monthly gross profit for an Antminer S21 XP Hydro has dropped to $137 from $192 last month, based on an energy cost of $0.07 per kilowatt-hour.

The market sentiment was dampened just as the important $60,000 support level was being tested, and this profitability crisis comes as demand for AI capacity and infrastructure expenditures skyrocketed.

Growing AI Infrastructure Demand

In early May, the average net position change for Bitcoin held in mining pool and individual addresses became negative and has been negative ever since. The overall impact on Bitcoin’s price discovery is a drag, regardless of whether the goals of these liquidations are to finance continuing operations, lower debt leverage, or finance growth into AI data center computing.

A common point of contention amongst analysts is the disproportionate amount of Bitcoin hashrate held by the top three mining pools. Foundry USA, AntPool, and F2Pool have a combined 59% market share, according to the latest 7-day statistics. Alternatively, in 2022, the aggregate hashrate market share of the top three Bitcoin mining pools was 44%.

Rather than processors, experts at Bernstein claim that energy access is the main obstacle to growing AI data centers. Due to this limitation, several Bitcoin miners are shifting their power infrastructure to serve artificial intelligence computer applications, a field that is seen as more secure and profitable than conventional cryptocurrency mining.

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