Bitcoin miners purchase rigs as prices approach record lows.

Bitcoin miners purchase rigs as prices approach record lows.

The Steady Decline in Bitcoin Mining Rig Prices and its Implications for Miners


The world of Bitcoin mining is constantly evolving, and miners are always on the lookout for new opportunities to stay profitable. In the past year, the prices of bitcoin mining rigs have plummeted to near their all-time lows. This decline has been driven by various factors, including falling profitability, bitcoin price volatility, higher energy costs, hashrate growth, and increasing network difficulty. As a result, miners are taking advantage of this opportunity to upgrade their machines and stay ahead of the competition.

Falling Profitability and Declining Rig Prices

Mining rig prices are closely linked to profitability in the Bitcoin mining industry. When rigs make less money, their prices decline accordingly. The newest generation of mining rigs, such as Bitmain’s S19 XP and WhatsMiner M50S series, which use 25 joules of energy or less per terahash (TH) of computing power, have seen prices drop by a staggering 66% since July 2022. These rigs, once priced at $60 per TH, are now available for just $20 per TH, according to Luxor Mining’s Hashrate Index data.

It’s not just the newer models that have seen price drops; older bitcoin mining rig models have also seen their prices decline. This price reduction can be attributed to the fall in bitcoin’s hashprice, which measures the revenue miners generate per terahash of computing power. This measure of profitability, which takes into account Bitcoin’s network difficulty, price, energy costs, block subsidies, and transaction fees, has been “choppy and steadily decreasing” over the past year.

Bitcoin Halving and the Need for Efficient Machines

The decline in mining rig prices comes at a crucial time for miners as they gear up for the fourth Bitcoin halving, expected to take place in April 2024. A halving is an event that occurs approximately every four years, where the reward for successfully mining a bitcoin block is cut in half. This reduction is designed to control the supply economics of Bitcoin, with the total number of bitcoins mined capped at 21 million blocks.

As the halving event approaches, miners face the challenge of almost doubling their mining costs overnight to achieve the same revenue. This makes the need for more efficient machines a necessity. Currently, it costs around $10,000 to $15,000 per bitcoin to profitably mine a block. However, after the halving, some analysts predict that the cost could rise as high as $40,000 per bitcoin, underscoring the importance of the most efficient machines.

Seizing the Buying Opportunity

The drop in prices for newer-generation mining rigs has created a buying opportunity for miners. These lower prices have allowed some miners to acquire the machines they will need to stay profitable after the halving. For example, CleanSpark made a significant purchase of approximately $145 million worth of Bitmain Antminer S19 XPs in April.

However, as miners realize the importance of using newer generation machines heading into the halving, the prices of these computers with an efficiency of under 25 J/TH have started to tick up. According to Luxor data, prices for these rigs have increased by 5% in the past month.

Miners understand the need for newer mining rigs with higher efficiencies and computing power compared to older models. The shift towards these more advanced machines is crucial for their continued profitability in the face of rising costs and diminishing rewards.


The world of Bitcoin mining is highly competitive, and miners must constantly adapt and upgrade their machines to stay profitable. The decline in mining rig prices provides a unique opportunity for miners to acquire more efficient machines ahead of the fourth Bitcoin halving. This event, which will drastically reduce mining rewards, emphasizes the importance of using advanced rigs with higher efficiencies. As the mining industry evolves, miners must stay ahead of the curve, leveraging the latest technologies to maintain their profitability in the ever-changing landscape of Bitcoin mining.

This article includes contributions from Eliza Gkritsi. Editing by Aoyon Ashraf and Elaine Ramirez.