Global GPU Price Drops to Compensate for Falling Bitcoin Mining Revenue

The dramatic drop in GPU prices has opened a small window of opportunity for smaller miners to get more powerful and powerful mining equipment. effective.

As a direct result of falling Bitcoin (BTC) prices, total revenue earned by miners in transaction fees and mining rewards fell to their lowest level in a year at nearly $15 million on 4th July. However, a simultaneous drop in graphics cards or GPU prices are set to help miners offset their operational costs in an ongoing bear market.

Bitcoin mining revenue has fallen 79.6% in a 9-month period, since hitting an all-time high of $74.4 million on October 25, 2021. Additionally, a global shortage of chips and the coronavirus pandemic have driven up the prices of the most important part of a mining rig - the graphics processing unit (GPU) - further impacting miners' bottom line.

Bitcoin mining revenue during the past year. Source: Blockchain.com

As card makers resumed business around the world, GPU prices have seen a massive drop, with some cards selling for below MSRP . In May alone, GPU prices fell by more than 15% on average as supply exceeded market demand. Additionally, the recent influx of GPUs has forced secondary market sellers to lower their exorbitant prices on used mining rigs.

GPU price trend during the last year. Source: TechSpot

Cointelegraph has previously reported that several public Bitcoin miners are well positioned to survive the prolonged bear market as low revenues continue to support the costs of operating mining facilities. As shown below, Argo, CleanSpark, Stronghold, Marathon and Roit are some of the miners with a stable ratio of mining revenue to operational costs – a good indication of good health.