GPU mining revenue plunged in September – Hive Blockchain
- Hive Blockchain, a Bitcoin miner, stated that GPU mining revenue dropped “dramatically” after The Merge.
- GPU mining is only a small part of what it does.
- In September, GPU mining produced 44% less BTC equivalent than a month earlier.
Due to the fact that proof-of-work minable coins experienced significant volatility since The Merge, the company is still deciding whether to shift its power capacity to bitcoin mining.
According to Bitcoin miner Hive Blockchain, the profitability of GPU mining has decreased significantly since the switch to altcoins after The Merge.
The company said in a statement on Wednesday that historically, Hive’s Ethereum GPU mining generated 3x to 4x more revenue per MW (megawatt) capacity than ASIC Bitcoin mining.
GPU mining is a relatively small part of Hive’s business
According to the company, GPU mining revenue increased from $120,000-$150,000 per day before The Merge to $20,000-$30,000 per day afterwards.
However, the company stated that mining coins that can be mined have experienced significant volatility since The Merge, are trending upwards, and are currently generating over $30,000 in daily revenue.
According to Hive, the same amount of energy used to mine bitcoin using ASICs can produce approximately $41,000 at the current difficulty levels.
The company is currently evaluating the potential revenue it could generate once the ecosystem stabilizes and whether it proves financially attractive, although it has ASIC machines ready to make the switch if it decides to do so.
However, the majority of Hive’s revenue comes from bitcoin mining, which takes up the remaining 25 of the company’s 130 megawatts of power capacity. According to the statement, the company’s success in the Ethereum mining industry prepared it for success in bitcoin mining, which it is now focusing on.
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Hive’s total BTC equivalent produced from GPU mining fell 44%
The Hive’s balance was 3,350 BTC and 356 ETH on September 30, down from 5,100 ETH at the end of August.
Instead of holding these coins, the company switched its GPU hashrate to other mineable coins, resulting in Bitcoin payouts. After The Merge, it produced another 15.8 BTC this way.
From 228.4 BTC exclusively from Ethereum mining in August to 111.7 BTC exclusively from Ethereum and 15.8 BTC exclusively from other coins in September, Hive’s total BTC equivalent produced by GPU mining decreased by 44% month-over- month.
Hive stated a few days before The Merge that it was evaluating other GPU-minable coins as it planned to maximize its 6.5 TH/s Ethereum mining capacity (16 percent of its total energy capacity).
If it is clear that BTC mining is earning significantly more $/KWHR (dollars per kilowatt-hour) they will continue to expand the BTC fleet. By September 30, Hive’s operational bitcoin mining capacity was 2.28 EH/s. By the end of this month, IT intends to reach 2.7 EH/s and add another 1 EH/si over the next three to four months.
