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Bitcoin miners will keep decreasing: F2Pool executive

13-Jul-2022 By: Rohit Tripathi
Bitcoin miners will

Bitcoin miners will keep decreasing: F2Pool executive

While the bulk of significant cryptocurrency mining companies have sold their self-mined Bitcoin, a few companies including Marathon, Hut 8, and Hive continue to hold onto some.

According to a senior executive at significant Bitcoin (BTC) mining pool F2Pool, the cost of cryptocurrency mining equipment is projected to continue decreasing in the near future despite the ongoing crypto winter.

One of the largest Bitcoin mining pools in the world, F2Pool supports 14.3% of the global network. F2Pool published the most recent update on the mining sector on Tuesday. Focusing on June 2022 BTC mining results, F2Pool's study indicated that most Bitcoin mining businesses, including Core Scientific, have recently chosen to sell their self-mined Bitcoin.

A significant Canadian Bitcoin mining company, Bitfarms, sold 3,000 Bitcoin, or over 50% of its entire BTC investment, for $62 million in June to pay down its credit line.

According to Lisa Liu, head of worldwide business development at F2Pool, "I have investigated almost 10 publicly traded industrial miners and discovered that they are all quite honestly telling everyone that they are selling self-mined Bitcoins." The revenues, she continued, are used to pay operational costs, increase capital, and pay down debt from loan agreements for facilities and equipment.

The CEO also noted that over the past few months, the cost of application-specific integrated circuit (ASIC) miners has plummeted significantly. Early June saw an estimated 70% drop in the price of top and mid-tier ASIC miners from their all-time highs in the $10,000–$18,000 range.

After reaching an all-time high of $74.4 million in October 2021, Bitcoin mining revenue had decreased by approximately 80% as of mid-July over a nine-month period. After a global pandemic-related chip scarcity, the price of graphics processing units eventually became more accessible as a result of the significant fall.

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