To start with a theory: miners' profitability depends on the rate of the cryptocurrency, the overall hash rate of the network and, hence, the complexity of mining. The higher the hash rate becomes - i.e. the amount of computing equipment in the network - the higher the complexity becomes. Since the latter parameter maintains the block creation time at the same level, the influx of miners will end up increasing the complexity. This means that the same equipment will then bring in less money.

With the exchange rate it is simple: its rise and fall directly affects the income by increasing or decreasing it respectively.

Bitcoin exchange rate hourly chart

However, the situation in the cryptocurrency industry is complicated. On the one hand, the BTC exchange rate at $21,000 is already 69.5 per cent behind its all-time high. On the other hand, not only has the complexity not fallen, but it has set several records.

Bitcoin mining complexity graph


Because of this, the same equipment has started to bring in less BTC, with the coins themselves now costing significantly less.

As a result, miners’ revenues have dropped significantly. And this has led to some serious problems.

What is happening to Bitcoin mining

To illustrate, here’s a graph of daily Bitcoin miners’ earnings from Blockchain platform representatives. Yesterday, the total earnings of computing equipment owners was $18.197 million.

However, on June 17, the network recorded a local high of $14.401 million. The last time something similar was recorded was in June 2021. At that time, the income was equivalent to 13.065 million.

Bitcoin mining yield graph

The situation with miners was analysed by Arcane Research. They compared the company’s cost of revenue (in black), which means the amount of direct costs related to the goods and services provided by the company, and the operating cash flow (in blue), which means the amount of funds generated by the ordinary activities of the company.


The stronger the second indicator outperforms the first, the better it is for the company. Still, in this case, the miner should have enough resources to get through the challenging market conditions seen in the coin niche right now.

Financial performance of publicly traded mining companies

In the end, the best prepared for a bearish trend were the public miners in the form of Argo, CleanSpark and Stronghold.

At the same time, some major miners have already faced serious problems amid the uncertainty in the market. According to Cointelegraph, Compass Mining has encountered difficulties. We’re talking about the platform, which was once promoted by Twitter co-founder Jack Dorsey, while the company itself faced the closure of a bank account from JPMorgan.


As a reminder, the company offers customers to buy ASIC miners to mine bitcoins and then forget about them. That is, Compass employees place the devices in special locations, service the machines themselves and take a certain percentage of the payments. At the same time, users only receive a top-up on their own Bitcoin wallet.

However, now Compass Mining has lost one of these locations. The reason for the situation is payment problems. According to representatives of Dynamics Mining, which provides Compass with a location for the devices, the latter’s employees have paid late fees six times, while three times they have not paid for the electricity and rent used at all.

As a result, Dynamics Mining employees announced that they were terminating their relationship with Compass Mining. And they did so on Twitter.

As it was later clarified, the consumption bill totaled $1.2 million, with Compass Mining paying only $665,000. Dynamics representatives then voiced additional figures in response. Here’s the quote.

All you had to do was pay $250,000 for three months of electricity consumption. And since you don’t give your customers serial numbers, we can’t even help them.

ASIC miner for Bitcoin mining

What will happen to Compass Mining customers’ devices in this situation is unknown. As representatives point out, “in an emergency situation, the company can move, remove or relocate users’ equipment without any liability”. Accordingly, in theory, customers could face certain problems – at least in the form of inactivity of devices for several days.


We believe that this situation is a logical consequence of conditions in the cryptocurrency market. After all, miners regularly need money to support their own activities, so there is no way to "go for it" here. However, the biggest crypto enthusiasts will find a way to replenish their holdings. Even if mining becomes unprofitable, it is still possible to buy coins.