In the past two months, miners have not been having a good time. The price of Bitcoin has pulled back, while the total network computing power has surged to a new high of 1078 EH/s, causing miner revenue to drop directly from 60 million dollars to 40 million, a fall of 35%.

The income structure is actually quite simple: 144 blocks per day, with a fixed reward of 3.125 BTC per block, plus transaction fees. But here comes the problem—Computing Power has skyrocketed, earning only $0.036 per TH/s per day, and the profits are becoming thinner and thinner.

Electricity costs are the lifeline for miners. New machines like the S21 can still earn some cash in low electricity price areas; however, older equipment like the S19 is in dire straits, with electricity prices at $0.06/kWh basically just breaking even. The cost differences among leading mining companies are also significant: Marathon's cost to mine one Bitcoin is approximately $39,235, while Riot's is $46,324, and the industry average is estimated to be around $58,500. But this is just the cash cost. When factoring in depreciation, impairment, and options as those accounting expenses? The total cost can soar over $100,000, with some companies already showing losses on their books.

The differentiation in the circle is very obvious now. Large mining enterprises are supported by efficient equipment, cheap electricity, and financing capabilities, maintaining positive cash flow, and they tend to hoard coins instead of selling; small and medium miners and high-cost players are struggling, as a fall in coin prices or an increase in difficulty brings them close to the breakeven line, leading many to choose to shut down while waiting for difficulty adjustments. As long as cash flow is not interrupted, miners will continue to mine, and network difficulty will automatically balance. The real risk? Financing gets stuck or electricity prices suddenly surge, at which point computing power may concentrate or retreat on a large scale.

The resilience of the industry is still present, but the Matthew effect is becoming more and more evident. The next round of growth will depend on capital and energy efficiency.