45 Older-Generation Bitcoin Miners Are Unprofitable After the Reward Halving

On May 11, the Bitcoin network experienced its third block reward halving, which had chopped the 12.5 BTC reward to 6.25 coins following the event. It’s been close to a week later, and data stemming from mining rig profitability websites show that more than 45 older generation devices are not profitable right now at today’s bitcoin exchange rates.

After May 11, Many Older-Generation Bitcoin Mining Rigs Bit the Dust

Recent research analysis by 8btc columnist Vincent He and the cryptocurrency mining operation F2pool, indicates that roughly 45 older mining devices have been shut down overnight since the reward halving. Statistics from the web portal Asicminervalue.com, also indicate that the estimate of 45 miners is based on the electrical price of 0.35 Chinese yuan per kilowatt-hour (kWh) or $0.049 USD.

In this article, we leveraged data from Asicminervalue.com, and F2pool and 8Btc’s mining rig reports. Using Asicminervalue.com we referenced machines at today’s exchange rate and two different electricity costs ($0.02 and $0.05 per kWh).

The best mining device out of the entire slew of ‘unprofitable’ mining rigs would be Bitmain’s Antminer S11 (20.5 TH/s), which still loses $0.09 per day at $0.049 per kWh. Other machines that are not making profits at this rate, include the Bitfury Tardis, Antminer S9 SE, GMO Miner B2, Innosilicon T2 Turbo, Bitfily Snow Panther B1, Canaan Avalonminer 921, and the popular Antminer S9. Data shows that at $0.049 per kWh, Bitfury’s B8 released in 2017 with 49 TH/s, suffers a deep loss of more than $3 a day.

Blockchain.com stats show on May 15, 2020, the overall BTC hashrate was around 110 exahash per second (EH/s).

According to Vincent He, “with the electric charge of 0.3 Chinese yuan per kWh, the electric charge of an S9 can account for 140% of the whole cost.” The Chinese mining operation F2pool states:

Now, only when the price of the bitcoin rises to $15,000, can Antminer S9 cover the cost. In the past, even if there…

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