Is Bitcoin Mining Profitable Again?

Over the past 3 years Bitcoin miners have experienced a roller coaster of emotions when calculating profitability. The Bitcoin miners who performed the best were those who got in early during or before 2016 and were rightfully rewarded when the 2017 bull run came along. However those rewards did not come without major risks. The price of Bitcoin during 2016 was hardly high enough for miners to reap the benefits at the time.

Post the Bitcoin bull run in 2017 many miners set up shop on too large of a scale and unfortunately were burnt by the correction in BTC price during 2018. This correction instilled immense fear in the mining industry and resulted in major BTC mining farms powering down.

So what does Bitcoin mining profitability look like today in 2019?

How do you calculate Bitcoin mining profitability?

To understand what profitability looks like at the moment it is essential to understand what actually affects the profitability of Bitcoin mining. Here are the major factors that affect Bitcoin mining profitability.

1. The price of Bitcoin
   Without a doubt the price of Bitcoin will have a major influence on Bitcoin mining profitability. When Bitcoins price increases the value of the coins mined become far greater and therefore profitability increases. However, the increase in profitability is far greater for miners who have been mining for months before the price increase. This is because these miners have already got a stack of Bitcoin that they mined at lower prices, and they now have the coins to sell at a higher price.
   
   
2. Network hash rate/difficulty
   Hash rate is the amount of computations (hashes) that are being submitted to the Bitcoin Blockchain. It is a miners hash rate which determines how many Bitcoin they will mine. There is a fixed amount of Bitcoin rewarded for every block of bitcoin that is created, and therefore the more miners that are on the network, the less reward there is to share.
   
   
3. Mining equipment
   There are two major factors to consider when purchasing mining equipment. The hash rate and the power draw. Currently Mining Store has access to miners which submit 65 tera hashes per second (TH/s) and these miners draw about 3300 kwph. A 65 TH/s Bitcoin miner would generate $14 USD worth of Bitcoin per day before power costs.

You can view the live Bitcoin profitability calculator with this link: https://bit.ly/2lUkpLH

So is it profitable to mine BTC right now?

Bitcoin mining right now is quite profitable based on daily returns staying at $14 USD per day for the next year. However if you look at the profitability on a long term projection, profitability could be far greater based on historical performance. Mining Bitcoin right now in 2019 could be similar to mining Bitcoin back in 2016 just before the 2017 bull run.

Consider the following scenario as an example of how profitable Bitcoin mining could be.

Bitcoin is currently at around $10,000 USD per coin. Today a miner can produce around $14 USD per day worth of Bitcoin. The table below demonstrates how much revenue a Bitcoin miner can make a year based on following two different strategies.

Strategy 1 (Blue): This involves converting the Bitcoin into USD on a daily basis.

Strategy 2 (Green): This involves holding the Bitcoin until it reaches one of the three hypothetical target prices.

The Compound Mining Strategy Explained

Quick Answer. A compound mining strategy reinvests mined BTC or mining profits back into additional hash rate, so a single starting position grows over time. Mining Store models this through the Compound Calculator, which supports three approaches: Simple (accumulate BTC only), Compound A, and Compound B. Compound strategies work best when BTC price and hash rate expectations are both trending upward.

The 2019 version of this article proposed two strategies: convert mined BTC into USD daily, or hold until a target price. That is a reasonable framing for a starter miner but it ignores the third option that materially outperforms both in past cycles: reinvest the mined BTC into additional hash rate before the next price rally, so the base grows before the multiplier kicks in.

This is exactly what Mining Store’s Compound Calculator models. Rather than picking a single hold target, an Australian miner can use the tool to test how a portion of daily BTC revenue redeployed into more S21 XP or S21 XP Hydro units would compound out to the next halving in April 2028. Neither Compound A nor Compound B are guarantees. They are proprietary models that let a client decide how much operational risk they want to take between now and the next halving cycle.

To run the numbers on your own capital plan, use the Mining Store Compound Calculator and, for a personalised walkthrough, book a free consultation with the Mining Store team.

Bottom Line. The most powerful profitability lever most retail miners never use is compounding mined BTC into additional hash rate, and Mining Store has a dedicated calculator to model it.

Your Next Step with Mining Store Australia

Bitcoin mining profitability in Australia in 2026 comes down to three things: the BTC price, the network hash rate and difficulty, and the delivered electricity rate. The 2024 halving cut block rewards in half, hardware has become several times more efficient than the 2019 generation this article originally described, and network difficulty has fallen year-on-year for only the second time in Bitcoin’s history. For Australian miners the practical reality is that hosted mining at a low kWh rate does more to protect profitability than any hardware or timing decision.

That is exactly what Mining Store Australia was built for. As Australia’s number-one Bitcoin mining hardware supplier and Melbourne-based Bitcoin mining specialist, Mining Store gives Australian miners access to the current Bitmain Antminer S21, S21 Pro, S21 XP, and S21 XP Hydro range at competitive Australian pricing, alongside a hosted Bitcoin mining Australia service at 12 cents per kilowatt-hour, an on-site mining service centre, and proprietary tools including the Mining Strategy Calculator and Live Income Estimation Tool. Founded by Bitcoin miners William Wright and Callum Cameron in Melbourne, Mining Store has supported more than 6,000 Australian Bitcoin mining clients since 2016 and continues to run one of Australia’s largest cryptocurrency mining hosting operations.

If you want the Mining Store team to model your Bitcoin mining profitability against your actual capital plan and electricity situation, book a free Bitcoin mining consultation explore the Mining Store hosted mining facilities directly. You can also reach the team on 1300 644 978 or at [email protected] during Melbourne business hours, Monday to Friday.