Bitmain to Reduce BTC Mining Hashrate by 88%

Total hashrate of Bitmain equipment used for mining on the SHA-256 is 237.29 PH\s; month ago it was 2072 PH/s
08 May 2019   240

The leading manufacturer of mining equipment Bitmain in the past 30 days has reduced the hashrate of bitcoin mining by 88%. This is evidenced by data reporting, which the company publishes monthly.

As of May 7, the total hashrate of the equipment used by Bitmain for mining cryptocurrencies on the SHA-256 algorithm (Bitcoin and Bitcoin Cash) is 237.29 PH/s.

Bitmain's Hashrate on Different Algorithms
Bitmain's Hashrate on Different Algorithms

At the same time, just a month ago, the volume of the respective capacities was 2072 PH/s.

Based in Beijing, Bitmain not only manufactures equipment that is popular among miners, but also mines cryptocurrency using its own resources. The company began to publish reports on the available mining facilities in July last year. At that time, the hashrate of SHA-256 equipment was 1692 PH/s.

By October 2018, the hashrate had risen to 2339 PH/s, but by March it had already dropped to 1700 PH/s. Against this background, the share of Bitmain's computational power in the total bitcoin hashrate decreased from 4% to 0.4%.

After the April BTC price recovery, the amount of computing power of Bitmain began to grow again. At the same time, the total hashrate of the first cryptocurrency network, which has updated the six-month maximum by the beginning of May, began to recover with confidence.

Hut 8 to Unveil BTC Mining Cost Price in 2018

In 2018, company produced 5592 BTC; in the first quarter, the mining of one BTC cost $2055, and in the fourth quarter it reached $3995
07 May 2019   218

Mining Company Hut 8 Mining Corp. published a financial report for the last year, in which it disclosed data on the growth of the cost of Bitcoin production in each quarter.

In 2018, the company produced 5592 BTC, however, during this period, the cost of activity increased significantly. In the first quarter, the mining of one Bitcoin cost $ 2055, and in the fourth quarter $ 3995, which had a very negative impact on the margin.

Hut 8 Management’s Bitcoin Outlook
Hut 8 Management’s Bitcoin Outlook

At the same time, operating losses in the last quarter of 2018 were $ 116.56 million. This was probably due to a sharp fall in Bitcoin exchange rate in November.

Bitcoin Farm of Hut 8 is located in the Canadian Medicine Hut. There are also mining data centers built in conjunction with the Bitfury Group.

We note that recently the hash rate of the first cryptocurrency updated the six-month maximum. Such dynamics are most likely related to the re-integration of the old Antminer S9 models into the network, which again began to bring profit to the owners.

It is expected that in the summer in some provinces of China, tariffs for hydropower will decrease, allowing even more miners to do business.