Hashrate determines how much computational power a miner contributes — and electricity cost determines how expensive it is to keep that power running.
Mining profitability depends on the balance: higher hashrate = more rewards, but higher power use = more cost.Efficient miners maximize hashes per watt and pay the lowest price per kWh.
What Is Hashrate?
Hashrate measures how many calculations (hashes) a mining machine performs per second to find valid blocks.
It’s expressed in terahashes per second (TH/s) or exahashes per second (EH/s).
| Unit | Meaning |
|---|---|
| 1 TH/s | 1 trillion hashes per second |
| 1 EH/s | 1 quintillion hashes per second |
What Is Electricity Cost?
Electricity cost is the ongoing operational expense of mining.
It’s measured in kilowatt-hours (kWh) and varies widely by location and energy source.
| Source | Average Cost (USD/kWh) |
|---|---|
| Hydroelectric | $0.02–$0.04 |
| Wind/Solar | $0.03–$0.06 |
| Coal/Natural Gas | $0.06–$0.10 |
| Residential | $0.15+ |
For miners, even small price differences can make or break profitability.
The Core Relationship
Profitability = (Bitcoin Earned × BTC Price) − (Electricity Cost + Hardware Cost)
So, your hashrate affects how much BTC you earn,
while your electricity cost affects how much you keep.
Example Calculation
Let’s take a popular ASIC miner: Antminer S19 Pro
| Metric | Value |
|---|---|
| Hashrate | 110 TH/s |
| Power Use | 3,250 W |
| Electricity Cost | $0.06 / kWh |
| BTC Price | $65,000 |
| Daily Reward (est.) | 0.00023 BTC/day |
Revenue: 0.00023 × $65,000 = $14.95/day
Electricity: 3.25 kW × 24h × $0.06 = $4.68/day
Profit: $14.95 − $4.68 = $10.27/day
If electricity costs rise to $0.10/kWh, profit drops to just $6.10/day — showing how sensitive ROI is to power prices.
Efficiency: The Key Metric
Efficiency is measured as Joules per Terahash (J/TH) — how much energy is needed for one trillion hashes.
| Miner Model | Hashrate | Efficiency | Power Use |
|---|---|---|---|
| Antminer S21 | 200 TH/s | 17.5 J/TH | 3,500 W |
| Antminer S19 Pro | 110 TH/s | 29.5 J/TH | 3,250 W |
| Whatsminer M30S+ | 100 TH/s | 34 J/TH | 3,400 W |
The lower the J/TH, the more profitable — especially when energy prices rise.
Hashrate vs. Electricity Cost Balance
| Scenario | High Hashrate | Low Hashrate |
|---|---|---|
| Low Power Cost | Best case — maximize profit | Low cost but fewer rewards |
| High Power Cost | Profitable only with efficient rigs | Often unprofitable |
| Volatile BTC Price | Greater exposure to market swings | Lower potential but safer |
The goal: Maximize hashrate efficiency, minimize power cost.
Location Matters
Mining farms thrive where energy is cheap and stable, like:
-
Iceland (geothermal)
-
Texas (wind and solar)
-
Paraguay (hydroelectric)
-
Canada (hydro and cold climate)
Cooler temperatures also lower cooling costs — further improving ROI.
Summary
Bitcoin mining profitability hinges on one equation:
Hashrate earns you BTC — electricity determines if you keep it.
Efficient miners focus on:
✅ Lower energy costs
✅ High-efficiency hardware
✅ Stable BTC price outlook
Balancing hashrate and electricity cost is what separates profitable operations from loss-making ones.