Bitcoin mining profits drop to historic lows... Environmental infrastructure transformation officially underway

Bitcoin(BTC) mining profits have fallen to historic lows, with mining companies turning their attention to renewable energy infrastructure. The profitability indicator “Hash Price(Hash Price)” has dropped below the breakeven point of around $40(approximately 59,100 KRW), making cost reduction the biggest challenge facing the mining industry.

Hash Price refers to the expected revenue per unit of computational power when successfully adding a block to the blockchain. According to data from mining analytics firm Hashrate Index(Hashrate Index), the current hash price is approximately $39.4(per petahash)/PH/s( per day, roughly 58,250 KRW). Typically, $40 is regarded as the benchmark for mining companies to achieve breakeven.

In response to this profitability deterioration, a renewable energy-based mining facility has been launched in Texas, USA. Bitcoin mining and renewable energy company Sangha Renewables announced on Thursday that it has activated a 20-megawatt(MW) solar mining facility in Hext County, Texas. The facility’s electricity is 100% supplied by solar power, which is expected to significantly reduce mining costs.

Recently, the mining industry has been under ongoing pressure due to electricity costs, Bitcoin price volatility, and increasing competition. As a result, several large U.S. mining firms are actively exploring alternative energy sources such as wind and solar, with efforts to gain a competitive edge in capital efficiency and environmental sustainability becoming more prominent.

Texas is particularly regarded as a mature, mining-friendly environment, with relatively low electricity costs and proactive state-level policies supportive of cryptocurrency. Its well-developed energy infrastructure and abundant solar and wind resources are attracting many Bitcoin miners to consider establishing operations there.

If Bitcoin prices do not rise and hash prices continue to decline, some small-scale mining operations may inevitably cease as mining difficulty adjusts. Therefore, in the medium to long term, transitioning to environmentally friendly mining infrastructure is expected to become a core survival strategy for the industry.

Article summary by TokenPost.ai

🔎 Market Insights

Hash Price, a key indicator of Bitcoin mining profitability, has fallen below the breakeven point, exerting pressure on the entire mining sector. As renewable energy facilities become alternative solutions to restore profitability, an efficiency-centered restructuring within the industry is likely to accelerate.

💡 Strategic Highlights

• Focus on mining-related stocks and renewable mining infrastructure sectors

• Monitor profitability changes driven by hash rate and Bitcoin price trends

• Analyze increasing mining demand in regions like Texas, which have favorable regulatory environments and low electricity costs

📘 Terminology Explanation

• Hash Price(Hash Price): The expected daily revenue a Bitcoin miner can earn with a certain computational capacity. A primary indicator directly related to mining profitability

• PH/s(: The unit of computational power representing 10 million billion hashes processed per second

• MW) (megawatt): The unit of electricity supply or consumption. 1 megawatt equals 1 million watts, used to denote large facility power capacity

TP AI Notes

This article summary is generated using a language model based on TokenPost.ai. Main content of the article may be omitted or may differ from actual facts.