Mining profitability has fallen: how miners in Kyrgyzstan can maintain their efficiency

Private miners in Kyrgyzstan have faced a decline in profitability against a backdrop of market turbulence. Several factors are affecting the profitability of cryptocurrency mining: a fall in the price of Bitcoin relative to its annual highs, a reduction in transaction fees and a drop in the hashprice index — one of the key indicators of mining profitability.

According to data from the analytical platform The Block, in June the average transaction fee on the Bitcoin network, the hashprice index and miners’ aggregate revenue were close to their lowest levels since the start of the year.

Experts note that smaller miners are feeling the impact of market volatility more acutely than larger companies. Key challenges include declining profitability—particularly when using older-generation hardware—increasing pressure on cash flow due to ongoing electricity and maintenance costs, and the need to sell mined crypto-assets during unfavourable periods to cover running costs.

Additional pressure is exerted by the hashprice metric, which reflects the revenue generated by one terahash of computing power per day. Its decline is linked not only to fluctuations in the price of Bitcoin, but also to a reduction in transaction fees on the Bitcoin network, as well as the persistently high mining difficulty.

In these circumstances, experts recommend focusing on improving the efficiency of the equipment. Key measures include continuous monitoring of performance, optimising energy consumption and cooling systems, controlling expenditure, and building up a reserve to cover operating costs. Experts also advise against making unjustified investments in new equipment if these are intended solely to achieve short-term increases in profitability.

Binance Pool believes that modern digital tools help miners improve operational efficiency. They enable real-time monitoring of equipment status, the detection of performance drops, monitoring the stability of connections to mining pools, and reducing the number of rejected calculations.

According to experts, despite the current market situation, a long-term approach remains the most effective strategy. The history of the cryptocurrency market shows that periods of declining returns are followed by recovery, which is why cost control, risk management and stable equipment operation are of key importance.