Miner Hashprice Hits Record Low, Posing Challenges for Mining Businesses
In a surprising turn of events, the miner hashprice, which is used to gauge mining profitability, has plummeted to an all-time low of $36 petahash per second (PH/s), according to a recent report by Blockbridge. This has created a bleak outlook for miner profitability, especially if the next difficulty recalculation remains unchanged.
Despite the recent rebound in the price of Bitcoin following its sharp decline on August 5th, the miner hashprice still stands at around $40 PH/s, which is 10% lower than the previous record low recorded in July 2024.
This unfavorable situation has made it exceedingly challenging, if not impossible, for most major public mining businesses to generate profits. For instance, companies like MARA, Core Scientific, and Riot Platforms estimate monthly mining expenses of $60,000 or more per Bitcoin. MARA, based on financial data from the second quarter, had the highest overall mining cost in July.
To mitigate the impact of these high expenses, MARA and Riot Platforms have chosen to hold onto their Bitcoin holdings. Conversely, Core Scientific has opted to sell all of its mined Bitcoin to cover operating costs. Both approaches come with their own set of risks and opportunities, as highlighted by the research.
Core Scientific, for instance, must sell its Bitcoin at current market prices to reduce its debt, while MARA and Riot Platforms are willing to take on debt in order to expand their operations and potentially reap significant gains.
In a bid to secure its future, Marathon Digital Holdings (MARA), the largest Bitcoin mining company, recently added 2,282 BTC to its treasury, amounting to nearly $124 million. This strategic move demonstrates their long-term vision and commitment to accumulating a substantial Bitcoin treasury.
In other news, Cardano (ADA) seems to be lagging behind other leading cryptocurrencies in the current market recovery. 
