The extreme mining profitability in November led to massive investments in new production capacity. All these new ASICs coming online have resulted in a growing hashrate while the bitcoin price has fallen.
The increasing hashrate and the falling bitcoin price have pushed the mining profitability down to levels not seen since 2020. At $40 per MWh, the energy-efficient Antminer S19 currently yields a cash flow per bitcoin of $13k, corresponding to an 80% decline from the November 2021 peak. The Antminer S9, our proxy for old generation machines, is now cash-flow negative.