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Global GPU price drops to compensate for falling Bitcoin mining revenue

The meteoric drop in GPU prices opened up a small window of opportunity for small-time miners to procure a piece of more powerful and efficient mining equipment.

As a direct result of falling Bitcoin (BTC) prices, total revenue earned by miners in transaction fees and mining rewards dropped to its one-year lows at nearly $15 million on July 4. However, a concurrent fall in graphic cards or GPU prices is set to help miners offset their operational costs amid an ongoing bear market.

Bitcoin mining revenue fell 79.6% over a period of 9 months, ever since reaching an all-time high of $74.4 million on Oct. 25, 2021. In addition, a global chip shortage and the coronavirus pandemic shot up prices of the most important part of a mining rig — the graphics processing unit (GPU) — further impacting the miners’ bottom line.

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With card manufacturers resuming operations across the world, GPU prices have seen a massive decline with some cards selling for below MSRPs. In May alone, GPU prices dropped over 15% on average as supply exceeded the market demand. Moreover, the recent influx in GPUs has forced sellers on the secondary markets to bring down their exorbitant prices on used mining rigs.

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As shown below, Argo, CleanSpark, Stronghold, Marathon and Roit are some of the miners with a stable mining revenue to operational cost ratio — a fair indication of good health.

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Moreover, the meteoric drop in GPU prices opened up a small window of opportunity for small-time miners to procure a piece of more powerful and efficient mining equipment. Coupled with lower hash rate requirements of 203.6 exa hashes per second, miners now require lower computing power to successfully mine a block on the Bitcoin blockchain.

Despite the evident drop in mining revenue, Marathon Digital Holdings revealed to continue stacking BTC via mining while being “fairly well insulated and well-positioned.”

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