Global GPU Prices Decline as Bitcoin Mining Revenues Fall

The total revenue received by miners in the form of transaction and mining fees fell to a year's low of nearly $15 million on July 4, amid falling bitcoin prices. But at the same time, the cost of graphics cards or GPUs has fallen, which will help miners offset operating costs.

Bitcoin mining revenues have fallen 79.6% in 9 months since reaching a record high of $74.4 million on October 25, 2021. In addition, global issues such as a global chip shortage and the coronavirus pandemic have impacted the price of graphics processing units (GPUs), which has hit miners' bottom line.

GPU prices have dropped significantly, and some cards have been selling at below MSRP since the resumption of card manufacturers around the world. In May, for example, GPU prices fell by more than 15% on average as supply outstripped market demand. Moreover, the recent influx of GPUs has forced sellers in secondary markets to reduce their exorbitant prices for used mining units.

The strong drop in GPU prices will provide a small window of opportunity for smaller miners to purchase more powerful and efficient mining equipment. Combined with a reduction in hash rate requirements to 203.6 exa hashes per second, miners now require less processing power to successfully mine a block in the Bitcoin blockchain.