ASIC market undergoes ‘significant repricing,’ analysts say

Following Bitcoin’s halving in April, which resulted in miners’ rewards being cut, many mining models have seen “significant declines” in their prices, according to the Hashrate Index.

The ASIC market is undergoing significant changes as mining rigs attempt to adapt to the post-halving environment, with Bitcoin’s (BTC) hash rate hitting record lows. Hashrate Index analysts say that the latest-generation Bitcoin miners, such as the S21 and T21, significantly outperformed older models in Q2, with crypto miners prioritizing efficiency to navigate the current challenging market environment.

ASIC prices | Source: Hashrate Index

Despite its industry-leading efficiency at launch, the S21 saw its price drop in the lead-up to the halving, suggesting it was initially “overpriced,” analysts say. However, it recovered throughout the rest of the quarter and finished Q2 only marginally down.

The Hashrate Index notes that Q2 reversed what had been a promising year for Bitcoin’s hash rate. After a strong Q1, the hash rate took a significant dive, hitting an all-time low of $44.43 PH/day in May. Analysts say that Bitcoin’s USD hash rate dropped 56% during Q2 to $49.16 PH/day, representing a 53% YTD and 38% YTD decline, adding that on a BTC-based basis, the hash rate is down 68% YTD.

Crypto miners’ performance with AI/HPC vs. non-AI/HPC | Source: Hashrate Index

Analysts also commented on revenue diversification efforts by several public miners. Despite moves to offer AI and HPC services, Q1 data suggests that self-mining remains the dominant revenue stream for public miners. Discussions around the potential of AI and HPC strategies suggest that these businesses currently “account for a very small portion of total revenue,” according to analysts.