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As long as Bitcoin remains above $6,925, the miners in China remain profitable

Bloomberg New Energy Finance (BNEF) analyst Sophie Lu says that Bitcoin miners in China can “profit from bitcoin as long as it’s worth more than $6,925”. This is in terms of short-term running costs (note that 75% of the mining capacity for Bitcoin is in China).

While mining is profitable at the highest regulated electricity price of $0.13 per kilowatt-hour in China, many companies can take advantage of overcapacity in the power-generating sector to negotiate rates as low as $0.03, Lu wrote. Breakevens are achievable at $3,869 at those power prices, Lu said.

Many are probably breaking even at a lot less with discounted rates. So mining today is extremely profitable.

Via: Bitcoin Can Drop 50% and China Miners Will Still Make Money, with a good graph on Bitcoin Breakevens.

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