Luxor Mining is buying miners to expand hash rate scale

Colin Harper, content director of mining pool operator Luxor Mining, said in an interview that due to bitcoin price fluctuations, rising energy costs, hashrate growth, and network difficulty. The profitability of Bitcoin miners has been declining, and the price of miners has dropped accordingly. It has fallen to near all-time lows over the past year, but crypto miners are using the opportunity to scale up to stay ahead. Since July 2022, prices for the latest generation of miners including Bitmain’s S19 XP and WhatsMiner M50S series have dropped from $60 to $20 per terahash, according to Luxor Mining's Hash Rate Index data. Harper added that miners are preparing for the fourth Bitcoin reward halving, which is expected to take place in April 2024. Once the halving occurs, miners will face almost doubling mining costs and will need more efficient machines to reduce costs. Currently, it costs at least $10,000 to $15,000 to produce each bitcoin. Some analysts say the cost per bitcoin could rise to $40,000 after the halving, making the most efficient mining machines a necessity for miners. The price drop for the newer generation models appears to be offering some miners an opportunity to purchase the machines they need to remain profitable after the halving. For example, in April, CleanSpark purchased Bitmain Antminer S19 XP worth about $145 million.