It is known that the mining process is controlled by many factors to determine whether the process is profitable or not, on top of which is the cost of the hardware used, the electricity consumed and the value of the coin. The process is very profitable if the value of the coin increases.

Which is what happened with Bitcoin, which rose to a two-month high, valued above $8,900, causing outdated mining equipment to become profitable again, at least in the short period before the Bitcoin reward split and Bitcoin skyrocketed.

According to the Mining Profitability Index, which is tracked by both mining pools (PoolIn and F2Pool), older mining hardware, such as “Bitmain’s AntMiner S9” or “Canaan Avalon A851” can now generate a gross margin of between 10% and 20% at an average cost Electricity is $0.05 per kilowatt-hour.

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For those who have adopted more efficient optimization methods, upgraded their hardware, and integrated more than one “Bitmain’s AntMiner S9” at a time, gross profit margins can increase to as much as 30%-40% at the current bitcoin price.

and reported Source The rainy season in China, which contributes about 70% of the total bitcoin mining capacity, brings hydroelectric power that lowers electricity costs to 3 cents per kilowatt-hour.

If the bitcoin price and mining difficulty remain constant, older generation mining models like “Bitmain’s AntMiner S9” could remain marginally profitable even after the halving event.

It is estimated that the daily number of bitcoins mined is 1,800 bitcoins, which will drop to 900 units after the reward split event.

Meanwhile, major manufacturers’ flagship machines including Bitmain’s Antminer S17 and S19 series as well as MicroBT’s WhatsMiner M20 and M30 series can generate returns of over 60%, even at an average of 5 cents per kWh.

Dmitry Ushakov, chief commercial officer of Russia-based mining company BitRiver, said:

Today’s price action will bring back even miners who were recently fired due to lower profitability.

After the halving we believe the 3 to 4 cents price range is enough to continue mining profitably with S9 mining hardware, but if the current price action continues.

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After bitcoin’s price crash on March 12, the worst bitcoin plunge in seven years, a slew of legacy mining rigs were forced to move off the network, leading to a 16% drop in competition and mining difficulty in late March.

The decline in mining difficulty, and the rise in the price of Bitcoin has helped the return of miners who own old hardware and equipment.

As a result, the total Bitcoin hash rate has soared to an almost all-time high of 110 exahashes per second (EH/s) over the past few weeks.

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Bitcoin has been stagnating at $7,000 for weeks, putting pressure on mining farms that relied on old models before the fork event came.

However, bitcoin mining is a dynamically changing game.

Mining farm operators previously estimated that older models such as the S9 accounted for about 20% of the total computing power of the Bitcoin network in March, a significant drop compared to last year as major players replaced these older models with new, more powerful hardware during late 2019.

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