JPMorgan estimated the Bitcoin miner average per coin production cost dropped from about $20,000 at the beginning of June to $13,000 in mid-July.Changes to the energy usage model in May and June, and the rapid drop in BTC-USD prices, may have caused the large, though only theoretical, decrease in Bitcoin production costs.A change in dollar-denominated costs will not meaningfully change the need for increasing sales of Bitcoin production or holdings as miners' cash on hand diminishes over time.Direct costs on a per coin basis are most sensitive to the rapidly changing total network hash rate.The likely renewed trajectory toward a higher total network hash rate will make mining more energy intensive. Mining costs per coin will rise.In a mid-July report, JPMorgan (JPM) estimated Bitcoin (BTC-USD) miner production costs fell to about $13,000 per coin. This figure was widely reported in the crypto sector and business media. The general reporting seemed to overstress the number itself and its implications for the miners more broadly. However, Decrypt ran an interesting piece exploring beyond the headline number and spoke with the CEO of mining company CleanSpark (CLSK) about the topic.The JPMorgan report emphasized that the cost reduction may reduce pressure on miners to sell their Bitcoin holdings. The report also attributed the lower production costs to a "strong effort" by the miners to maintain profitability by deploying more ef...
