Cost to mine one Bitcoin in the US rises from $5K to $17K in 2023

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According to Bitcoin Mining Data Resources, it costs a Bitcoin (BTC) miner at least $17,000 to generate one BTC in the US, compared to $5,000 to $10,000 a year ago. Hashrate Index and Luxor.

Bitcoin Hash Price Drops 58% in One Year

Not surprisingly, rising electricity prices across US states are driving up Bitcoin mining costs.

In particular, between January 2022 and January 2023: Commercial electricity rate An average surge of 10.71% per state in the US, above the average CPI surge of 6.4%.

The biggest drawdown from around $48,000 to below $15,000, coupled with Bitcoin’s poor performance in 2022, has resulted in active miners consistently losing money due to higher operating costs and lower returns. It is clear that there are

However, this changed in the first quarter of this year, when the miner hash price, the US dollar price per terahash per second per day (TH/s/ d) increased by 31%.

Hashrate Index researchers said:

“The 70% gain in the quarter only helped bitcoin to rebound and the hash price went up with it.”

What are the cheapest and most expensive states to mine bitcoin?

New Mexico emerged as the cheapest and most profitable state for Bitcoin miners at $16,850 to mint 1 BTC in Q1. Hawaii, on the other hand, was the highest at around $114,590.

Regionally, the states of the Southern and Midwestern United States are the most attractive for miners in terms of electricity.

Recently, several US states, including Arkansas, Montana, Missouri and Mississippi, have taken concrete steps to protect cryptocurrency miners from excessive taxes and regulations. Meanwhile, Texas is amending its utility and tax laws to tighten restrictions on cryptocurrency mining companies.

Energy deflation could boost miner profitability

Additionally, researchers expect Bitcoin mining margins to grow further, based on data from the US Energy Information Institute (EIA). Energy Price Deflation Expectations.

RELATED: Bitcoin Supporters Rally at Texas State Capitol to Oppose Bill That Cuts Mining Incentives

For example, the agency expects electricity demand to fall 1% in the second quarter due to additional generation from renewable sources and lower natural gas prices. In addition, natural gas prices he expects to fall below $3 in 2023 from an average of $6.45 in 2022.

Bitcoin mining stocks shine

Reducing operating costs could help otherwise cash-strapped bitcoin mining companies survive in 2023. For example, Core Scientific, an already bankrupt bitcoin mining company, has a share price of over 450% as of this year.

Similarly, the HI Crypto Mining Stock Index is up more than 100% this year, signaling a return of investor appetite for mining socks.

Hashrate Index researchers said:

“If the price of Bitcoin rises another 40% to $42,000 this year, most mining stocks will rise more than 50% from today’s levels, and the 4-5 biggest gainers will rise more than 150%. I guess..”

This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.