Bitcoin mining outflows decline, stocks, but here’s silver
This should have been a happy holiday for bitcoin miners and those who have invested in bitcoin mining stocks. Mostly based on what happens in 2021. Now, however, it looks like the holiday blues have started.
“My” your manners
A report from Arcane Research examined mining stocks, cash flow for miners, and the profitability of bitcoin mining to get a glimpse of the fall in prices after bitcoin. Starting with the share prices, the report determines
“Since November 9th, Marathon is down 56% while Riot Blockchain is down 43%. Bitcoin price only dropped 32% over the same period – which shows that miners are more volatile than Bitcoin price. “
On the hardware side, the report said the Antminer S9’s cash flow was reduced by 50%, while the Antimner S19’s cash flow was 36% – after November 9th. It is also important to note that the cash flow from the device used is used for bitcoin mining. According to the report, the Antminer S9 is not as “efficient” as other machines.
Really dig in
All in all, however, this is not the time to wash your hands while mining bitcoin to reduce your losses. In fact, Arcane Research finds that mining itself is still quite lucrative. The report found
“Even though cash flow has decreased, mining is still highly profitable. The cash flow margins of S9 and S19 are 52% and 83%, respectively. Even after the recent decline, cash flow margins have improved in 2021 as Bitcoin price rises faster than hashrate. “
But one word of caution – an increasing BTC hash rate means that the profitability of Bitcoin mining could decline in the near future.
Don’t be so B- “Asic”
Is the ROI of Bitcoin mining worth the effort? Yes, yes and no. The answer often depends on the company an investor is supporting, as volatility can affect different companies in completely different ways.
For example, a previous report by Arcane Research showed that Marathon’s mining stock was up 391% compared to Bitcoin. On the other hand, Bit Digital has declined 56% compared to the king coin since January 2021.
It’s worth noting, however, that these numbers were recorded before the December 4th crash, and more drastic changes are possible from here on.