Bitcoin Mining Costs Surges Drastically Amidst Post-Halving Challenges
- The average cost to mine one Bitcoin has increased to $51,887 as per BitFuFu’s Q2 report.
- The price of BTC is facing a tough time breaching above the $60,000 mark amid high volatility.
An unaudited report detailing the financial and operational performance of BitFuFu , a cloud mining firm affiliated to Bitmain, was published for the second quarter of 2024, concluding on June 30. In light of the difficulties and expansion the company has faced over the last year, the findings show that the cost of Bitcoin mining has soared.
The average cost to mine one Bitcoin has increased to $51,887, the most significant jump among the numbers given by BitFuFu in its Q2 report. Rising power and operating expenses are to blame for the precipitous increase in pricing, which is noticeable when contrasted with $19,344 per mined BTC during the same time in 2023.
The halving event of Bitcoin in April 2024, which increased mining difficulty and reduced BTC payouts in half, is another possible explanation for the spike. At the time of writing, bitcoin is trading at $58,885 as per data from CMC . The price of Bitcoin is facing a tough time breaching above the $60,000 mark amid high volatility.
Substantial Performance
Despite a dramatic spike in the cost of mining Bitcoin, BitFuFu has extended the size of its operations. During the same time in 2023, mining capacity under control was 15.2 EH/s, but it climbed to 24.7 EH/s, a 62.5% rise, according to the report. Compared to the same time in 2023, the Bitcoin mining firm’s total revenue increased by about 70%, hitting $129.4 million, up from $76.3 million.
Expanding the company’s cloud-mining services led to an increase in revenue of $77 million for the reporting period, which explains the gain in revenue.
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