The lower miner revenues have forced some miners with the highest bitcoin production costs to unplug their machines, leading to a 10% decrease in the hashrate since the all-time high at the beginning of May. Although they have access to some of the cheapest electricity in the industry, the public mining companies are also under pressure from the decreasing profitability of mining. In this article, I analyze the balance sheets and power costs of some public miners to find out who are best prepared for a prolonged mining bear market.
Due to the lower hashrate, the block production rate stays at lower than optimal levels. We will likely see the second downwards difficulty adjustment in a row tomorrow. Even though on-chain activity continues to stay muted, Bitcoin’s layer-2 scaling solution, the Lightning Network, continues evolving.