Markets
ASIC market undergoing ‘significant re-rating’, analysts say
Following the Bitcoin halving in April, which reduced miner rewards, many mining models saw “significant price drops,” according to Hashrate Index.
The ASIC market is undergoing significant changes as mining rigs attempt to adapt to a post-halving environment, with Bitcoin (Bitcoin) Hashrate Price Hits Record Highs. The latest generation of Bitcoin miners, such as the S21 and T21, performed significantly better than older models in the second quarter, according to analysts at Hashrate Index. sayadding that cryptocurrency miners have prioritized efficiency to navigate the current challenging market environment.
ASIC Prices | Source: Hashrate Index
Despite its industry-leading efficiency at launch, the S21 saw its price drop ahead of the release reduce by halfindicating that it was initially “overvalued,” analysts say. However, it rebounded during the remainder of the quarter and ended the second quarter with only a marginal decline.
The Hashrate Index highlights that the second quarter reversed what had been a promising year for Bitcoin’s hashrate. After a strong first quarter, the hashrate saw a significant decline, hitting an all-time low of $44.43 PH/day in May. During the second quarter, Bitcoin’s USD hashrate fell 56% to $49.16 PH/day, marking a 53% decline year-to-date and 38% year-over-year, analysts say, adding that on a BTC-denominated basis, the hashrate is down 68% year-to-date.
Performance of cryptocurrency miners with AI/HPC vs. those without AI/HPC | Source: Hashrate Index
Analysts also commented on revenue diversification efforts by several public miners. Despite efforts to offer AI and high-performance computing services, Q1 data indicates that self-mining remains the primary revenue source for public miners. Discussions around the potential of AI and HPC strategies reveal that these activities “currently represent only a fraction of a fraction of overall revenue,” according to analysts.