The crypto winter has clearly been tough for the miners, who’ve seen revenue margins shrink as bitcoin costs plunged greater than 50% this yr, whereas energy costs soared and capital dried up. This has instantly damage costs for infrastructures required for bitcoin mining, together with the extremely specialised computer systems, which have been in excessive demand throughout final yr’s bull run, driving up costs to all-time-highs, in line with an index maintained by Luxor Applied sciences. Costs for the mining machines have since crashed close to their 2020 lows this yr and in some cases, even the biggest producers, equivalent to Bitmain, are providing giant reductions to promote their mining rigs.
