- Hive Blockchain, a Bitcoin miner, stated that GPU mining revenue decreased “dramatically” following The Merge.
- GPU mining is only a small part of what it does.
- In September, GPU mining produced 44% less BTC equivalent than a month earlier.
Due to the fact that proof-of-work mineable coins experienced significant volatility since The Merge, the company is still deciding whether to shift that power capacity to bitcoin mining.
According to Bitcoin miner Hive Blockchain, profitability from GPU mining has decreased significantly since shifting to altcoins following The Merge.
The company stated in a statement on Wednesday that historically, Hive’s Ethereum GPU mining was generating 3x to 4x more revenue per MW (megawatt) of capacity than ASIC Bitcoin mining.
GPU mining is a relatively small portion of Hive’s business
According to the company, its GPU mining revenue increased from $120,000-$150,000 per day prior to The Merge to $20,000-$30,000 per day thereafter.
However, the company stated, poof-of-work mineable coins have experienced significant volatility since The Merge, trending upward, and currently generate over $30,000 in daily revenue.
According to Hive, the same amount of energy that is used to mine bitcoin using ASICs could produce approximately $41,000 at the current difficulty levels.
The company is currently evaluating the potential revenue it could generate once the ecosystem stabilizes and if it proves to be economically attractive, though it has ASIC machines ready to make the switch if it decides to do so.
However, the majority of Hive’s revenue comes from bitcoin mining, which takes up the remaining 25 of the company’s 130 megawatts of power capacity. According to the statement, the company’s success in the Ethereum mining industry prepared it for success in bitcoin mining, which it now focuses on.
Hive’s total BTC equivalent produced from GPU mining fell 44%
The Hive’s balance was 3,350 BTC and 356 ETH on September 30, down from 5,100 ETH at the end of August.
Instead of holding those coins, the company’s GPU hash rate switched to other mineable coins, resulting in Bitcoin payouts. After The Merge, it produced an additional 15.8 BTC in this manner.
From 228.4 BTC solely from Ethereum mining in August to 111.7 BTC solely from Ethereum and 15.8 BTC solely from other coins in September, Hive’s total BTC equivalent produced by GPU mining decreased by 44% month-over-month.
Hive stated that a few days prior to The Merge that it was evaluating other GPU-minable coins as it planned to maximize its 6.5 TH/s Ethereum mining capacity (16 percent of its total energy capacity).
If it is clear that BTC mining earns substantially more $/KWHR (dollars per kilowatt-hour) they would pursue expanding the BTC fleet. By September 30, Hive’s operational bitcoin mining capacity was 2.28 EH/s.By the end of this month, IT intends to reach 2.7 EH/s and add an additional 1 EH/s over the next three to four months.