In late 2021 miners were the toast of the town with a surefire way to profit: hook powerful computers up to cheap power, crack fiendish maths puzzles and sell newly minted coins on the booming market.
In November, the global revenue from mining has dropped to $17.2 million a day due to a global energy crisis, a decline of about 72% from last November when miners were up $62 million a day, according to data from Blockchain.com.
Joe Burnett, head analyst at Blockware Solutions said that miners have continued to watch margins compress, the price of bitcoin has fallen, mining difficulty has risen and energy prices have gone up.
It's put pressure on some players who bought expensive mining machines, or rigs, on the rise ofBitcoin prices to recoup their investment.
It is trading at around $19,000 and has not broken above $25,000 since August, regaining November's all-time high of $69,000.
As more miners come online, the process of solving puzzles to mine token has become more difficult. They have to consume more computing power to increase operating costs, especially for those without long-term power pricing agreements.
The profit for a terahash per second of computing power has fluctuated between $0.119 and $0.070 a day since July, down from $0.45 in November last year and around its lowest level for two years.
The grim state of affairs could be here to stay, as Luxor's Hashrate Index, which measures mining revenue potential, has fallen almost 70% this year.
It's been painful for miners.
Marathon Digital, the Riot Blockchain and the Valkyrie Bitcoin Miners ETF have sunk more than 60% this year, while Compute North filed for bankruptcy last week.
The last bitcoin is expected to be mined in 2140, more than a century away - and there is a spy opportunity in the gloom.
The best time to get in is when the market is low, the same mining rigs that went for $10,000 earlier this year, and you can get that for 50% to 75% off right now, said William Szamosszegi, CEO of Sazmining Inc.
Many miners are cutting back on buying rigs, forcing makers to cut prices.
The popular S 19 J Pro rig sold for $10,100 in January on average, but now sells for $3,200, according to analysts at Luxor.com, which said that prices for bulk orders of mining machines had fallen by 10% in the past week.
Chris Kline, co-founder of theBitcoin IRA, said miners would have to focus on energy efficiency to bring costs down and avoid any repercussions from climate change related regulations.
He said miners will look to stay afloat regardless of current market conditions by managing their balance sheet, processing units and energy costs.