Altcoin News: BTC Mining Profits Start to Grow

March 5, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Newsletter Diar confirmed that Bitcoin mining profits began to rise after falling to its lowest level in 18 months.

According to Diar analysts, in February of this year, there was a decrease in profits from mining to volumes that were not observed since August 2017. Revenues from mining BTC were $195 million in February 2019 compared with $210 million in January and record highs of $951 million reached in December 2017.

“The situation was somewhat complicated by the fact that miners working on the best equipment and content with wholesale prices for electricity faced the fact that their gross profit decreased, and this required a massive deployment of hashing power to stay afloat,” the Diar study says.

The last two months of 2018 were also not financially beneficial for miners. According to the reports, the Russian secondary market for video cards and mining farms was in a deep crisis last November. The hashrates of the main cryptocurrency sagged almost immediately after the first serious collapse of quotations, which occurred on November 14 last year. During this difficult period, some mining companies, such as Giga Watt, went bankrupt.

In the following months, the market gradually began to revive, experiencing difficulties in adapting to new conditions and the subsequent recovery of losses. Diar also confirms this progress and notes that gross margin for those working with Bitmain AntminerS9 increased in March compared with February. However, it is too early to talk about full recovery. Companies related to the mining industry, for example, Nvidia and AMD this year also predicted a decline in profits amid a general decline in the mining market.

Author: Marko Vidrih