What Determines Bitcoin Mining Profitability?
Five variables determine whether a bitcoin miner earns more than it costs to run: hashrate (TH/s), energy efficiency (J/TH), electricity rate ($/kWh), BTC price, and network difficulty. The first three are knowable before you buy hardware — the last two change daily.
Understanding each variable lets you make better hardware and hosting decisions. Use our profitability calculator to model any combination of inputs — we do not publish fixed profit or ROI estimates.
1. Hashrate (TH/s)
Hashrate is the amount of hashing work your machine performs per second, measured in terahashes per second (TH/s). More hashrate means a proportionally larger share of each block reward — all else equal. Your miner competes with the entire global network, so what matters is your hashrate relative to the total.
The three Whatsminer models we sell deliver:
| Model | Hashrate | Efficiency (J/TH) | Power Draw |
|---|---|---|---|
| Whatsminer M70 | 214–242 TH/s | ~14.5 J/TH | ~3,140–3,500 W |
| Whatsminer M70S | 226–258 TH/s | ~13.5 J/TH | ~3,500 W |
| Whatsminer M73 | 470–526 TH/s | 14.5 J/TH | ~7,200 W |
2. Energy Efficiency (J/TH)
J/TH measures how many joules (watts × seconds) your miner consumes per terahash of work. A lower number means higher efficiency — your machine earns the same hashing output for less electricity. Over months of continuous 24/7 operation, a 7% efficiency difference compounds into a significant cost gap.
Important: the Whatsminer M73's edge over the M70S is raw hashrate density and silent hydro operation — NOT efficiency. At 14.5 J/TH, the M73 is actually less efficient per terahash than both air-cooled models. See our full J/TH efficiency guide for the complete comparison.
3. Electricity Rate ($/kWh)
Electricity is the largest ongoing operating cost in bitcoin mining. Unlike hardware (a one-time purchase) or BTC price (outside your control), electricity rate is a direct function of where and how you mine.
| Scenario | Rate ($/kWh, all-in est.) |
|---|---|
| US residential average (2026) | ~$0.13–$0.16 |
| Premium hosted facilities | ~$0.09–$0.12 |
| Competitive hosted facilities (2026 industry range) | ~$0.065–$0.08 |
| Fathom Labs — Southeast Texas | $0.07 (all-in, no hidden fees) |
Industry rate estimates based on publicly reported 2026 hosted colocation pricing. Rates vary by provider and contract terms.
4. Bitcoin Price (USD)
Your mining revenue in USD is your BTC earnings × the BTC/USD price. This is the most volatile factor — BTC prices have historically moved 10–30% in short periods. As a reference snapshot: BTC traded at approximately $69,000–$69,400 in early June 2026, having fallen below $70,000 that week. This figure changes daily. Never plan a mining operation on a single BTC price assumption — model a range of scenarios with our calculator.
5. Network Difficulty
Network difficulty adjusts every ~2,016 blocks (~2 weeks) to keep block time close to 10 minutes. When the total network hashrate rises, difficulty increases and each miner earns less. When hashrate falls, difficulty decreases and each miner earns more.
In 2026, difficulty fell approximately 10.7% across six consecutive downward adjustments as some large miners reallocated compute capacity to AI/HPC workloads. As of early June 2026, network difficulty was approximately 139 T, with network hashrate estimated at ~740 EH/s by CoinWarz or ~1,000 EH/s by minerstat — trackers diverge due to methodology differences.
For more on how difficulty affects ROI, see our difficulty and ROI guide.
Frequently Asked Questions
What are the main factors that affect bitcoin mining profitability?
Five factors determine bitcoin mining profitability: (1) hashrate in TH/s — how much hashing work your hardware performs; (2) energy efficiency in J/TH — how many watts you consume per TH; (3) electricity rate in $/kWh — your single largest recurring cost; (4) BTC price — the USD value of your mining rewards; and (5) network difficulty — how hard it is to find a block, which adjusts every ~2 weeks.
Which factor in bitcoin mining do I have the most control over?
Electricity rate is the most actionable variable. BTC price and network difficulty are entirely outside your control. Your hardware's hashrate and J/TH efficiency are fixed once you purchase the machine. But where you mine — and at what electricity rate — is a decision you make. US residential electricity averages $0.13–$0.16/kWh; professional hosted mining facilities charge $0.065–$0.08/kWh all-in.
How does J/TH affect bitcoin mining profitability?
J/TH (joules per terahash) determines how much electricity your miner consumes per unit of hashing work. A lower J/TH means you produce the same hashrate for less electricity. For example, the Whatsminer M70S at ~13.5 J/TH consumes roughly 7% less electricity per TH than the M70 at ~14.5 J/TH. Over months of continuous operation, this difference compounds into a significant cost gap.
How does bitcoin network difficulty affect profitability?
Network difficulty determines your share of the block reward. When difficulty rises, each miner earns a smaller fraction of each block. When difficulty falls, each miner earns more. In 2026, difficulty fell approximately 10.7% across six downward adjustments as miners reallocated compute to AI/HPC. As of early June 2026, network difficulty was approximately 139 T.
Why does profitability change even if nothing about my setup changes?
Even with identical hardware and electricity costs, your profitability changes every day because BTC price fluctuates continuously and network difficulty adjusts roughly every two weeks. A 10% rise in difficulty means 10% fewer BTC earned per day from the same hardware. A 10% drop in BTC price means each BTC you do earn is worth 10% less. These are the two variables that make mining profitability inherently dynamic.
Model your specific scenario
Plug your hardware specs and electricity rate into our calculator to see estimated daily revenue vs. cost — or contact us to discuss hosting at $0.07/kWh.