Bitcoin (BTC) hitting the $20,000 range after a year and a half has made mining – the most important job in the ecosystem – expensive. However, if history repeats itself, BTC investors may witness another epic rally that previously helped Bitcoin reach an all-time high of $69,000.
Changes in Bitcoin prices directly affect the income of miners, who earn fixed block rewards and transaction fees in BTC to run their mining operations. In June 2022, total mining revenue fell below the $20 million range, and Blockchain.com data recorded the lowest drop of $14.401 million on June 17.
Miners’ total revenue over time. Source: blockchain.com
As seen above, the most recent drop in bitcoin mining revenue was last seen one year ago when the total value dropped to $13.065 million on June 27, 2021 – again when BTC was trading at roughly $34,000. What followed was Bitcoin’s five-month epic rise, which was fueled by pro-crypto initiatives such as the acceptance of BTC in El Salvador and crypto-friendly regulations around the world.
Despite mixed sentiments about the restoration of the cryptocurrency ecosystem, it was found that small investors increased their investment efforts amid a bear market as they fulfilled their long-term dream of owning one entire bitcoin (1 bitcoin). Global recession, geopolitical tensions, the downturn of crypto economies like Terra and the ongoing COVID-19 pandemic are currently preventing the Bitcoin ecosystem from unleashing its true potential.
Monthly operating cash flow versus mining revenue. Source: Arcane Crypto
A report shared by crypto-focused financial services firm Arcane Crypto reveals that many public Bitcoin miners can survive the current bear market. The key to the survival of bitcoin miners is a delicate balance between revenue and operating cash flow.
Based on the report, Argo, CleanSpark, Stronghold, Marathon and Roit are the best miners in a position to survive the crypto winter. Meanwhile, major player Core has almost matched its operating costs with its total revenue.
Related: Compass Mining loses facility after allegedly failing to pay electric bill
Bitcoin mining and hosting company Compass Mining has lost a hosting facility in Maine after electricity bills were not paid.
Dynamics Mining, the owner of the mine hosting facility, claimed Compass Mining had six overdue and three unpaid payments related to utility bills and hosting fees, stating that “all you had to pay was $250,000 for 3 months of energy consumption.”