The cost of Bitcoin mining has surged to over $17,000 per coin in the United States, up from the $5,000-10,000 range a year ago, due to rising electricity rates across the country.
This, combined with Bitcoin’s poor performance in 2022, has led to significant losses for miners. However, in Q1 of 2023, the hashprice rose 31% due to Bitcoin’s price recovery towards $30,000, leading to increased profitability for miners.
New Mexico was found to be the cheapest state to mine Bitcoin, while Hawaii was the most expensive. Several states have taken steps to protect crypto miners from excessive taxes and regulations, while lower energy prices could further boost mining margins.
The stock prices of Core Scientific and the HI Crypto Mining Stock Index have surged, indicating a return of investor appetite for mining stocks.
If the Bitcoin price increases by an additional 40% to reach $42k this year, most mining stocks would rise by more than 50%, while the four-to-five biggest gainers would soar by more than 150%.
Cryptocurrency market lost $70 billion, as Bitcoin fell below $20,000