Global GPU price falls to compensate for falling Bitcoin mining revenues

As a direct result of falling Bitcoin (BTC) prices, total revenues earned by miners in transaction fees and mining rewards fell to their one-year low of nearly $ 15 million on July 4th. However, a simultaneous fall in graphics card or GPU prices is set to help miners offset their operating costs in the midst of an ongoing bear market.

Bitcoin mining revenues fell 79.6% over a 9-month period, ever since reaching a record high of $ 74.4 million on October 25, 2021. In addition, a global chip shortage and the coronavirus pandemic pushed up prices for the most important part of a mining rig. – the graphics processing unit (GPU) – which further affects the miners’ bottom line.

With card manufacturers resuming operations worldwide, GPU prices have seen a massive decline with some cards selling below MSRP. In May alone, GPU prices fell above 15% on average as supply exceeded market demand. In addition, the recent influx of GPUs has forced sellers in the secondary markets to reduce their exorbitant prices on used mining rigs.

Cointelegraph has previously reported that several public Bitcoin miners are well positioned to survive the long-term bear market as the low incomes continue to sustain the operating costs of the mines. As shown below, Argo, CleanSpark, Stronghold, Marathon and Roit are some of the miners with a stable ratio between mining revenues and operating costs – a good indication of good health.

In addition, the sharp fall in GPU prices opened a small window of opportunity for small miners to acquire a piece of more powerful and efficient mining equipment. Along with lower hash rate requirements of 203.6 exa hashes per second, miners now require lower computing power to successfully extract a block on the Bitcoin blockchain.

Related: Marathon Digital continues mining operations despite the fall in BTC prices

Despite the clear drop in mining revenues, Marathon Digital Holdings revealed that they continue to stack BTC via mining while being “fairly well insulated and well positioned.”

Charlie Schumacher, VP of Corporate Communications at Marathon Digital, spoke with Cointelegraph, sharing insights into their overall operations:

“For reference, in Q1 2022, our cost of producing a Bitcoin was about $ 6200. We also have fixed prices for power, so we are not subject to changes in the energy markets.”