Due to the sinking Bitcoin prices, total revenue earned by miners in transaction fees and mining rewards dropped to its one year lows at nearly $15 million . However, a concurrent fall in graphic cards or GPU prices is set to help miners offset their operational costs during the ongoing bear market.
Bitcoin mining revenue fell 79.6% over a period of 9 months, ever since reaching an all time high of $74.4 million in 2021. Due to the coronavirus pandemic the high price of the most important part of a mining rig which is the GPU further impacted the miners’ bottom line.
With card manufacturers resuming operations across the world, GPU prices have seen a massive decline with some cards selling for below MSRPs. GPU prices dropped over 15% on average as supply exceeded the market demand. The recent influx in GPUs has forced sellers on the secondary markets to bring down their inflated prices on used mining rigs.
Several public Bitcoin miners are well positioned to survive the prolonged bear market as the low revenue continues to sustain the operational costs of the mining facilities. The sudden drop in GPU prices opened up a small window of opportunity for small scale miners to procure a piece of more powerful and efficient mining equipment. Coupled with lower hash rate requirements of 203.6 exa hashes per second, miners now require lower computing power to successfully mine a block on the Bitcoin blockchain.
