As Bitcoin mining machines continue to flood the market, the price of ASIC miners per terahash has dropped by more than 80% since its peak in 2021.
Bitcoin ASIC miners — machines optimised for the sole purpose of mining Bitcoin — are currently selling at bottom-of-the-barrel prices not seen since 2020 and 2021, indicating that the crypto bear market has deepened.
According to the most recent Hashrate Index data, the most efficient ASIC miners, those generating at least one terahash per 38 joules of energy, have seen their prices fall 86.82% from a peak of $119.25 per terahash on May 7, 2021 to $15.71 on December 25.
Bitmain’s Antminer S19 and MicroBTC’s Whatsminer M30s are examples of miners in this category.
The same can be said for mid-tier machines, with prices now averaging out at $10.23, down 89.36% from their peak price of $96.24 on May 7, 2021.
However, the least efficient machines, those requiring more than 68 Joules per TH, are now priced at $4.72, a 91% decrease from their peak of $52.85. It was last priced near this around November 5, 2020.
The price drop has been largely attributed to large Bitcoin mining companies that have struggled to remain profitable throughout the bear market, with many filing for Chapter 11 bankruptcy, incurring debt, or selling their BTC holdings and equipment to stay afloat.
Core Scientific, Marathon Digital, Riot Blockchain, Bitfarms, and Argo Blockchain are among the companies that have done so.
However, despite the steep price drop, some eager buyers have emerged. Many Russian-based mining facilities, such as BitRiver, can take advantage of relatively low electricity costs, with some modern hardware capable of mining one Bitcoin (BTC) at around $0.07 per kilowatt-hour in the energy-rich country.
While it’s difficult to predict what price direction ASIC miners will take next, Nico Smid of Digital Mining Solutions noted in a Dec. 21 tweet that ASIC miner prices bottomed at Bitcoin’s last halving cycle in May. 11, 2020 and moved up aggressively shortly after — something that could play out in Bitcoin’s next halving cycle, which is scheduled for April 20, 2024.