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The current state of bitcoin mining machine in this time

The current state of bitcoin mining machine in this time
 
    A downward trend in hash prices will force weaker miners to unplug, find more efficient energy sources and/or sell bitcoin mining machine or bitcoin holdings.
 
    Public Miner Stock vs Bitcoin
 
    As for most risk assets, including bitcoin and public bitcoin mining machine stocks, the pullback from all-time highs has been substantial. As Bitcoin fell 41.20% from its November all-time high, the entire bitcoin mining machine industry fared much worse, with an average drop of 64.10%. Public bitcoin miner stocks have become an additional investment vehicle for indirect bitcoin exposure, with the opportunity to outperform bitcoin over the past few years - at least until the market changes in November 2021.
 
    Apart from miners denominated in USD, how are they doing in Bitcoin? Those who use Bitcoin as a unit of account will naturally look for opportunities to surpass Bitcoin in an attempt to increase their overall Bitcoin position and share of the limited supply. With the recent drop, bitcoin mining machines are starting to look relatively cheap in BTC terms, as many of these stocks are near or hitting new 12-month lows.
 
    While our base case is that the broader stock market (and possibly Bitcoin) has more downside this year, individual bitcoin mining machine stocks may be closer to the bottom than the rest of the market, with most already down 60% to 70%. Here are some of the top public miners priced in BTC last year, well below their annual average.
 
    The decline in performance relative to Bitcoin over the past six months is the most recent. Select bitcoin mining machine have performed strongly relative to Bitcoin since 2020, with Bitcoin’s hash price rising from $0.07 to its most recent peak of $0.42. With prices exploding and hash rates lagging behind, bitcoin mining machines and miners have been in prime time, earning more per hash, bitcoin mining machines leading to higher profits, higher yields, and higher market valuations.
 
Here are the stock returns of some of the top Bitcoin-denominated market cap miners since 2020. The surge in hash prices coupled with increased investor demand and speculation has resulted in Marathon and Riot stocks outperforming Bitcoin by 202% and 70%, respectively. It is also crucial to choose the right miner stock (or basket of miner stocks) to perform well, making self-custody bitcoin mining machine the best approach for most people.
 
    These returns and outperformance have been more modest (even negative) since 2021, showing how difficult it is for miners to outperform Bitcoin with hash prices peaking during a broader macro shift to a safe-haven market regime.
 
    Hash price (miner revenue per terahash) is currently around $0.182 and continues to decline from its higher short-term trend as price stagnates and hash rate growth diverges, down 14.46% and up 22.23% year-to-date, respectively . Almost by April, at an annual growth rate of about 66.69%, the total hash rate will be close to 289 EH/s by the end of the year.
 
    While bringing so much hashrate and power online this year is a tall order amid ASIC supply chain delays, power capacity issues, and rising energy costs, a select group of top public miners still plan to bring their bitcoin mining machines online by 2022. Hash rate increased by 154% - from 37.1 EH/s to 94.1 EH/s. This increase (below) includes all announced 2022 self-mining and custodial hash rate plans.
 
    With no bullish price catalysts in the short term, the network’s hash rate expansion is expected to continue; higher difficulty adjustments will continue to drive hash prices lower. As the marginal cost of producing Bitcoin becomes more competitive over time, the hash price naturally tends to zero over the lifetime of Bitcoin, but in the short term there is a favorable possibility of price appreciation outpacing the ability of the hash rate to grow. 
 
    Despite the recent drop in valuations, we don’t see much change from public miners in curbing their 2022 and 2023 hashrate expansion plans or shrinking their BTC holdings. Bitcoin holdings reported a month-on-month increase of 7.3% in March, suggesting that Bitcoin miners have not yet faced significant capitulation or selling pressure to reverse a new industry trend of rising Bitcoin accumulation.


 
    A downward trend in hash prices will force weaker miners to unplug their bitcoin mining machines, find more efficient energy sources and/or sell those bitcoin mining machines or bitcoin holdings in a worst-case scenario. Some of these market dynamics can be tracked through the USD-denominated mining equipment price index as well as data from Luxor and its hash rate index.
 
    Overall, after a local peak in November 2021, the dollar price of ASICs across all efficiency tiers has been falling sharply. This could make ASICs more attractive to buyers at lower prices, but also reduce the value of assets for holders of large fleets. Like hash prices, the hash rate index expects prices to continue trending toward post-China ban lows.

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