BitOoda Mining Report, 12/18/2019 — Break-Evens

Good Evening from BitOoda! This week we are going to look at break-evens (BE) of some mining rigs. We thought this would be a great time to share some insight into where we see these machines being profitable.

The mining rigs we are going to look at are the Antminer S17, Antminer S17+, Whatsminer M20s, Innosilicon T3+, Avalon 1066, Avalon 1047, Antminer S9E and Antminer S9. As there are a bunch of machines out in the marketplace, we thought it would be great to keep this list to a minimum.

In the chart below, there are assumptions you should be aware of:

  • Electricity Cost: $0.05 kWh USD
  • OPEX: $0.01 kWh USD
  • Block Time: 9.75 minutes
  • Hash-Rate: 91 EH/s

*These are cash break-evens and don’t include depreciation.

The Antminer S17+ is by far the most efficient machine out of this sample, followed by the S17 and M20s. On the other end of the spectrum, the most notorious out of all these devices, Antminer S9 is borderline BE given the price of BTC, which currently sits around $7100 at the time of this writing.

Even if the BE falls negative, these machines may not turn off right away, but given a sustained negative return we can expect these machines to be turned off.

Below is a chart of the BE’s post halving.

Looking at this picture and comparing it to before the halving, makes things look pretty ugly. We can expect to see some of these machines come offline if the assumptions we made stay the same. With some machines expected to come offline post halving, the picture would look a little bit better given miner’s shares in the network will grow and they shall be receiving more of a reward per block.

We strongly believe miners should be thinking about hedging some of their exposure going into the halving. Whether this be hedging price risk, difficulty, hash-rate or finding new sites with lower electricity costs.

If you are looking to reduce your risk going into the halving and are unsure about how to do this, feel free to reach out to as we can help you with this process.

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