The team at BitOoda, a global digital asset financial technology and services platform offering risk management solutions, best-execution brokerage and market analysis, has released their Weekly Hash Report (dated 5/10/2021).
As mentioned in the report from BitOoda, Bitcoin (BTC) surged 3% week on week (WoW), “reaching $58,288 as of 5/9 at midnight UTC.”
The BTC network tracked 186 blocks mined yesterday (May 9, 2021), maintaining levels “over 170 through most of the week,” the report from BitOoda confirmed while adding that the upcoming difficulty reset will “see a large increase in target Hashrate, possibly to new all-time highs.”
The report further noted the total Bitcoin earnings per PH/s “are ~6.47mBTC, down from ~6.55mBTC / PH/s last week on decreased Transaction fees (Tx fees). (1mBTC or milliBTC = 1/1000 BTC.)” The report added that Tx fees “fell 121 bps WoW to 5.6% of miner rewards, as we see low congestion levels in the ‘Mempool’ driven by the high block count.”
The report revealed that Bitcoin mining revenue “increased to $377 / PH/s per day and $409/MWh due to the slightly higher spot price.”
As stated in the report:
“The BitOoda North American Hash Spread™ gained 1.2% WoW from $386 to $390 as BTC price rose and power prices edged up. We define the BitOoda Hash Spread™ as the difference between the cost of power per MWh and the Bitcoin mining revenue per MWh. This gives miners a quick sense of the surplus generated by their business to cover personnel, overhead, depreciation, and profit.”
Bloomberg data reveals that “a weighted average around the clock U.S. wholesale industrial power price of $18.38 / MWh, leading to an aggregate spread of $390 across 5 power markets,” the report noted.
It also mentioned that older-generation S9-class devices “saw their Hash Spread™ stagnate at $97 / MWh. S17-class devices, the bulk of the current installed base, saw a hash spread of about $280 / MWh.”
As noted in the report, the current target Hashrate “of ~147 EH/s implies ~143 MWh power consumption per Bitcoin mined using S19 rigs, and substantially more using older-generation equipment.”
As stated in the latest BitOoda report, current crypto mining economics “leave a significant margin of safety for miners, who can absorb both power price and Bitcoin price fluctuations, even as we expect total network Hashrate to continue to increase.”
The report continued:
“The 143 MWh of power consumption per BTC mined translates into ~$2,600 in power expense mining with S19-class rigs, based on the current average North American power price. It costs $9,325 using S9 rigs, still an 80%+ margin, excluding labor. As a rule of thumb, we estimate labor costs to be (very) approximately $1000 / BTC for S19-class rigs, about $1500 for S17-class rigs, and $4000 for S9-class rigs.”
The main takeaways from BitOoda’s report are:
- Sustained high block counts “suggest a possible all-time high difficulty reset by Thursday morning, implying an unusually short 11.5-day difficulty epoch.”
- Mining remains “an attractive way for investors to gain exposure to Bitcoin, although mining rig shipping delays enhance price and difficulty risk.”
BitOoda says it can help customers manage risk via “compliant, systematic, and rigorous hedging programs.”
You can contact the BitOoda team at [email protected] so you can talk about how they can potentially assist you with managing your risk or gain exposure to the blockchain and digital asset space.