Category: Research

• Bitcoin Mining is still profitable with large professional grade miners.
• Bitmai’s New Antminer S21 pro could help achieve a break even within a year.
• After the Bitcoin Halving, a decline in profit will only occur if Bitcoin does not cross $100k.

Even with all the criticisms, Proof of Work still remains one of the most secure and rewarding consensus mechanism in 2024. With Bitcoin Halving approaching around the 18th of April 2024, one question strikes all minds – Is Bitcoin Mining still Profitable?

The Answer is yes. If you are using a professional grade mining hardware such as the Antminer S21 (200 Th/s), you would still manage to earn $21 (with electricity cost $16). With latest miners costing around $18.9/Th (Bitmain Antminer S21 Pro), it would barely take you three months to recover your initial setup cost.

💥ANTMINER S21 Pro Newly Launched
❗️234T ❗️15.0J/T
📈Create a New Level of Hashrate pic.twitter.com/wZyUv7pbOQ

— BITMAIN (@BITMAINtech) March 29, 2024

Cost of Bitcoin Mining with Antminer S21 Pro in India

One of the most advanced Bitcoin miner from Bitmain, i.e., Antminer S21 Pro has efficiency of 15 J/Th and it can mine Bitcoin at a rate of 250 Th/s. The power consumed by the machine comes around 3000W.

If you consider electricity cost in my region(in Odisha, India), it would cost me somewhere around $0.06 per kWh(unit of electricity). That helps me earn around $16 a day or $500 roughly per month.

With the latest Bitmain Antminer costing around $4,725, take an additional 18% as taxes, it would roughly be around $5575.

Note: You could adjust rates according to your region, taxes and cost of electricity and calculate the profitability of your Bitcoin mining setup.

Effect of the Bitcoin Halving

Although the halving will reduce Bitcoin’s block rewards to 3.125 BTC per block, still with the expected rise in Bitcoin’s price post-halving, miners would still be profitable.

With my experience, I estimated same levels of profitability if Bitcoin crosses $100k. Several experts have already signalled that Bitcoin would cross this price levels within H1 of 2022.

Also if the Macro Diagonal Theory proves correct, this price might be achieved by June 2024.

Disclaimer: This post is not a promotional post for Antminer. This study has been done with Antminer S21 Pro as an example.

• Bitcoin Mining is still profitable with large professional grade miners.
• Bitmai’s New Antminer S21 pro could help achieve a break even within a year.
• After the Bitcoin Halving, a decline in profit will only occur if Bitcoin does not cross $100k.

Even with all the criticisms, Proof of Work still remains one of the most secure and rewarding consensus mechanism in 2024. With Bitcoin Halving approaching around the 18th of April 2024, one question strikes all minds – Is Bitcoin Mining still Profitable?

The Answer is yes. If you are using a professional grade mining hardware such as the Antminer S21 (200 Th/s), you would still manage to earn $21 (with electricity cost $16). With latest miners costing around $18.9/Th (Bitmain Antminer S21 Pro), it would barely take you three months to recover your initial setup cost.

💥ANTMINER S21 Pro Newly Launched
❗️234T ❗️15.0J/T
📈Create a New Level of Hashrate pic.twitter.com/wZyUv7pbOQ

— BITMAIN (@BITMAINtech) March 29, 2024

Cost of Bitcoin Mining with Antminer S21 Pro in India

One of the most advanced Bitcoin miner from Bitmain, i.e., Antminer S21 Pro has efficiency of 15 J/Th and it can mine Bitcoin at a rate of 250 Th/s. The power consumed by the machine comes around 3000W.

If you consider electricity cost in my region(in Odisha, India), it would cost me somewhere around $0.06 per kWh(unit of electricity). That helps me earn around $16 a day or $500 roughly per month.

With the latest Bitmain Antminer costing around $4,725, take an additional 18% as taxes, it would roughly be around $5575.

Note: You could adjust rates according to your region, taxes and cost of electricity and calculate the profitability of your Bitcoin mining setup.

Effect of the Bitcoin Halving

Although the halving will reduce Bitcoin’s block rewards to 3.125 BTC per block, still with the expected rise in Bitcoin’s price post-halving, miners would still be profitable.

With my experience, I estimated same levels of profitability if Bitcoin crosses $100k. Several experts have already signalled that Bitcoin would cross this price levels within H1 of 2022.

Also if the Macro Diagonal Theory proves correct, this price might be achieved by June 2024.

Disclaimer: This post is not a promotional post for Antminer. This study has been done with Antminer S21 Pro as an example.

Bitcoin has witnessed a selling pressure after the ETFs were approved on the10th of January 2024. The cryptocurrency made a high of $48,939 on 11 Jan 2024 after the ETF approval. The price then fell to $38,521 on 23 Jan 2024 witnessing a sell-off which was accompanied with rumors of profit booking.

FTX Sells $1.6 Billion GBTC Shares due to Bankruptcy

Although, there was a bit of profit booking taking place in the market, yet, the main reason we found was that FTX sold nearly $1.6 billion worth of Grayscale Bitcoin Trust (GBTC) shares. Since the shares were redeemed by FTX, the Bitcoin in those shares had to be sold off which cost the market to fall.

In total, GBTC saw outflows of about $2 billion out of which, FTX alone sold $1.6 billion worth of shares. The bankruptcy of the FTX made it compulsory for it to sell those shares to pay its debtors which sold 22.28 million shares were sold via Mirax Capital.

Grayscale Bitcoin ETF became the largest one after the Grayscale Bitcoin Trust was allowed by the SEC to convert it into an ETF. At the time of the conversion, the net value of assets under management were $28.6 billion.

As on 24 Jan 2023, it still has $24 billion with of assets.

#NOTE: The Grayscale Bitcoin Trust had bought Bitcoins on the basis of whose value, it issued shares. Anyone with a GBTC share was entitled to own a part of those Bitcoins.

Experts Comments on Bitcoin Sell-off

We have gathered few expert insights that help us decode the post ETF sell-off in Bitcoin.

Markus Theilsen, Head, 10x Research

In his WhatsApp community (of which I am a member), Markus Thielen noted that FTX sold off at least $1.6 billion Bitcoins in two tranches.

The first tranche was sold on 23 Jan 2024 which had $1b worth of Grayscale’s Bitcoin ETF.

The second tranche had nearly 17,140 Bitcoins and it was deposited to Coinbase on the same day. The value of the second tranche was nearly $660 million.

Cathie Wood, CEO, ArkInvest

Appealing on the CNBC ArkInvest CEO Cathie Wood said that now the Bitcoin ETFs are now available at very reasonable price. This helps retailers to buy Bitcoins at a very small price.

She also shared that FTX was selling the shares of Grayscale Bitcoin Trust worth over $1 billion which currently is the main reason behind the decline of Bitcoin’s price.