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Bitcoin mining profit is the value of the bitcoin subsidy and transaction fees earned by a machine’s hashpower minus electricity, hosting, maintenance, financing and other overhead. The April 2024 halving cut the subsidy from 6.25 BTC to 3.125 BTC per block, so miners now need a higher bitcoin price, stronger fees, cheaper power, more efficient hardware or a later difficulty decline to earn the same margin. Hashprice—the expected revenue per unit of hashpower—lets you compare those conditions consistently.

What Bitcoin mining profit actually measures

A miner does not earn a fixed amount for running a machine. It earns an expected share of network rewards based on its hashpower, pool performance and luck. The practical operating model is:

Daily operating profit ≈ (hashrate × hashprice) − (power draw in kW × 24 × electricity price) − hosting − other operating costs

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Hashrate is the machine’s computational capacity, usually stated in terahashes per second (TH/s) or petahashes per second (PH/s). Hashprice is the revenue expected from each unit of that capacity over a period, commonly dollars per PH/s per day or dollars per TH/s per day. The calculation produces an operating result, not necessarily a final business profit: hardware depreciation, financing, taxes, insurance, staff, repairs and downtime still have to be paid.

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The most important discipline is to use the same time period and units throughout. One PH/s equals 1,000 TH/s. A hashprice quoted in dollars per PH/s per day must therefore be divided by 1,000 before applying it to a TH/s figure.

How the April 2024 halving changed the economics

The subsidy was cut in half immediately

In April 2024, the block subsidy fell from 6.25 BTC to 3.125 BTC. The subsidy is the newly issued bitcoin paid for each block; it is separate from transaction fees. Unless the bitcoin price, fee income or a miner’s share of network hashpower changes, the halving cuts the subsidy portion of that machine’s revenue by 50%.

This is a network-wide change, not a reduction applied only to older machines. Every operator initially receives fewer bitcoin for the same computational work. Coinbase Institutional documented the subsidy change, and a 2024 Hut 8 SEC filing linked the halving and higher network difficulty to a sharp increase in its cost to mine one bitcoin. Hut 8 reported $26,232 per bitcoin in the second quarter of 2024, compared with $11,321 in the second quarter of 2023. Those are that company’s reported costs under its fleet, facilities and accounting, not a universal cost for every miner.

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Fees can cushion a halving, but they are not a safe base case

Transaction fees are market-driven and can rise when users compete for limited block space. Coinbase reported that fees exceeded 30% of miner revenue during some 2023 Ordinals-related spikes. Blockstream also recorded fees temporarily exceeding the block reward on the 2024 halving day. These episodes demonstrate that fees can offset some subsidy loss, but they do not establish a dependable long-term revenue floor. A conservative model separates normal fees from short-lived fee surges.

Difficulty eventually changes the number of competitors

When unprofitable machines are switched off, relocated or sold, network hashrate can fall. Bitcoin’s difficulty adjustment recalculates every 2,016 blocks. As Blockstream explains, when hashrate drops, difficulty lowers the work required per block, reducing the cost of producing one for miners that remain. The adjustment is a buffer, not an instant rescue: it occurs only at the retarget, and a miner’s bitcoin output still varies with total network hashrate and block luck.

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What hashprice means and why it moves

Hashprice is the market shorthand for expected gross mining revenue from a unit of hashpower. It rises when the bitcoin price or transaction fees rise. It falls when difficulty increases, competing hashrate grows, the bitcoin price drops or fee activity weakens. Because it already expresses revenue per unit of hashpower, it is useful for comparing different ASICs before considering their power draw.

CoinShares reported hashprice of approximately $28–$30 per PH/s per day in early March 2026. The same report attributed the compressed level to record difficulty, a weaker bitcoin price and minimal fees; fees were below 1% of total block rewards in that period. Treat that figure as a dated market observation, not a permanent rate. Hashprice can change materially between difficulty adjustments and from one day to the next.

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For a 100 TH/s machine, a $28/PH/s/day hashprice implies approximately $2.80 of gross daily revenue:

0.1 PH/s × $28/PH/s/day = $2.80/day

That amount must cover electricity and every other cost. It is not the machine’s profit.

Electricity is usually the first-order cost

The rate that matters is the all-in cost per kilowatt-hour, not merely an advertised energy tariff. Include demand charges, taxes, transmission fees, hosting markups and any minimums. If a site receives curtailment credits or demand-response payments, model them separately and only when the contract makes them predictable.

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The U.S. Energy Information Administration estimated that cryptocurrency mining represented roughly 0.6% to 2.3% of U.S. electricity consumption in 2024. It also noted that miners can reduce or relocate load when prices change. That flexibility can improve economics, but it may reduce uptime and therefore revenue. Hut 8 reported a June 2024 energy cost of $31.71 per megawatt-hour and described demand-response credits and economic curtailment as offsets. A hosting quote should state whether comparable credits belong to the operator or the customer.

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Efficiency is measured in joules per terahash

ASIC efficiency is normally expressed as joules per terahash (J/TH). A lower number means fewer watts—and therefore fewer kilowatt-hours—for the same hashrate. One J/TH is numerically equivalent to one watt per terahash (W/T). CoinShares reported a weighted network average of 34 W/T in 2024; that is a mix of many generations of equipment, not the specification of a particular machine.

Illustrative 100 TH/s fleet Efficiency Power draw Daily energy Daily power cost at $0.05/kWh
Mid-generation class 29.5 J/TH 2.95 kW 70.8 kWh $3.54
Efficient class 15 J/TH 1.50 kW 36.0 kWh $1.80
2024 weighted network average 34 J/TH 3.40 kW 81.6 kWh $4.08

The table is a calculation using the stated efficiencies, not a performance test. Cooling overhead can increase facility consumption, so use a measured site power figure or apply the facility’s power-usage-effectiveness (PUE) factor.

Worked examples: when is an ASIC profitable?

Example at the early-March 2026 hashprice

Assume a 100 TH/s machine, a gross hashprice of $28/PH/s/day and no fees or costs other than electricity. At 29.5 J/TH, the machine consumes 2.95 kW, or 70.8 kWh per day. At $0.05/kWh, power costs $3.54. Revenue is $2.80, producing an operating loss of $0.74 per day before hosting, pool fees, repairs and downtime.

An otherwise identical 15 J/TH machine uses 36 kWh per day, costing $1.80. Its illustrative operating margin is $1.00 per day before the same non-power costs. This is why CoinShares said that S19j Pro-class hardware at about 29.5 J/TH and $0.05/kWh was below breakeven under the early-March 2026 conditions, while fleets below 15 J/TH retained meaningful margin.

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Finding a break-even electricity rate

Ignoring non-power costs, divide daily revenue by daily kilowatt-hours:

Break-even power rate = daily hashprice revenue ÷ daily kWh

For the 29.5 J/TH example, $2.80 divided by 70.8 kWh is about $0.0395/kWh. For the 15 J/TH example, the result is about $0.0778/kWh. Hosting, pool fees and downtime lower both thresholds, so a quoted rate just below the mathematical break-even point is not a safe business case.

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How to evaluate a Bitcoin ASIC or hosting offer

There is no permanently “most profitable” ASIC. Profitability is a relationship between the machine and the site at a particular hashprice and difficulty. Evaluate each offer with the following inputs:

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  • Hashrate: use the manufacturer’s rated TH/s and allow for temperature-related throttling or defective chips.
  • Efficiency: use J/TH at the intended operating mode, including fan and controller power where stated.
  • Electricity: confirm the all-in $/kWh, demand charges, taxes, deposits, minimums and curtailment rules.
  • Facility terms: check hosting fees, uptime guarantees, cooling method, pool fee, repair charges and who pays shipping.
  • Hardware economics: include purchase price, useful life, warranty, spare parts, resale value and financing interest. The supplied evidence does not establish a current purchase price for any ASIC, so calculate this line from the actual quotation.
  • Revenue mix: model subsidy revenue separately from fees, and treat fee spikes as volatile.
  • Exit risk: stress-test a lower bitcoin price, higher difficulty, lower fees and a delayed difficulty response.

A repeatable profit-calculation procedure

  1. Record the machine’s hashrate in TH/s and efficiency in J/TH.
  2. Convert power draw: kW = TH/s × J/TH ÷ 1,000.
  3. Calculate daily energy: kW × 24.
  4. Multiply daily kWh by the all-in electricity rate.
  5. Convert the current hashprice to the machine’s unit; for a PH/s quote, divide by 1,000 to obtain dollars per TH/s per day.
  6. Multiply the converted hashprice by the machine’s TH/s to estimate gross daily revenue.
  7. Subtract electricity, hosting, pool fees, expected downtime, maintenance and other operating costs.
  8. Run at least three cases: a base case, a lower-hashprice case and a higher-difficulty or lower-fee case. Recalculate after every difficulty adjustment or material change in the power contract.

Common mistakes that make a profitable spreadsheet misleading

  • Using a headline electricity rate: demand charges and hosting add-ons can erase the apparent margin.
  • Assuming 100% uptime: repairs, firmware work, curtailment and pool outages reduce hash-hours.
  • Counting fee spikes as normal: the 2023 and 2024 fee events were exceptional examples, not a guaranteed baseline.
  • Ignoring cooling: a miner’s nameplate wattage is not always the facility’s total consumption.
  • Mixing hashprice units: confusing $/PH/s/day with $/TH/day creates a 1,000-fold error.
  • Treating difficulty relief as certain: difficulty adjusts every 2,016 blocks, but the timing and size of hashrate exits are unknown.
  • Comparing machines without dates: hashprice, bitcoin price and difficulty are moving inputs; label every forecast with its date and assumptions.

What miners should conclude after a halving

The halving makes efficiency and power contracts more decisive, but it does not produce one universal profitability threshold. At the early-March 2026 hashprice cited by CoinShares, a 29.5 J/TH machine paying $0.05/kWh was below electricity breakeven, while a sub-15 J/TH fleet could retain operating margin. A different bitcoin price, fee market, difficulty level or power agreement would produce a different answer.

Use hashprice to establish revenue, J/TH and the all-in power rate to establish energy cost, and then add hosting, uptime and capital costs. Re-run that model after each difficulty adjustment and whenever the bitcoin price, fee market or electricity contract changes.

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