According to TheEnergyMag’s analysis of Q4 earnings, the $40/PH/s mark is a critical gross margin breakeven point for many public mining companies, based on their fleet hashcost—the direct cost of running mining operations, excluding corporate overhead and financial obligations.
With hashprice now back at breakeven levels, any additional costs beyond the fleet hashcost—including corporate overhead and interest payments —are pushing almost all these firms into net-negative territory in terms of their proprietary mining segment.
The broader total hashcost estimates from Q4 2024 illustrate just how thin margins have become. TheEnergyMag’s corporate and financial hashcost estimates are based on a fair-share revenue approach.
The last time hashprice touched $40/PH/s was in mid-September 2024, when Bitcoin traded around $64,000. Fast forward to today, Bitcoin bounced back from a local low of $75,000 earlier this week to $82,000—yet miners are worse off. Why? Two key reasons:
1. Network hashrate surge: Bitcoin’s 7-day average hashrate has surged past 900 EH/s, inching closer to the 1 zatahashes per second milestone. This relentless rise in computational power continues to dilute mining revenue per unit of hash.
2. Plunging transaction fees: After a short-lived fee spike last year, monthly block transaction fees have been setting record lows since this year.
The economics are especially bleak for operators still running S19 Pro-class machines, which, according to Coin Metrics, still account for half of the network’s hashrate. These miners, already marginal in profitability after the April halving, are likely to face accelerated shutdowns or redeployments in the weeks ahead unless hashprice sees a meaningful rebound.
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