Shut Down or Keep Mining During Price Drops?

Whenever the market takes a steep dive, many miners begin to panic. Revenue shrinks, electricity costs pile up, and it starts to feel like you’re losing money just by staying online. One common reaction kicks in—“The price is down, shut it off, wait until it goes back up.” It sounds logical, but is it really the best choice? In reality, price is only part of the picture. The more important question is: Do you actually understand where your mining break-even point is? This blog will walk you through what a mining break-even point is, how to assess shutdown conditions, and in which scenarios it makes sense to power off your miner.

What Is a Miner’s Break-even Point?

Simply put, the break-even point is when your daily mining revenue equals your daily expenses. If your income is greater than your costs, you're in profit; otherwise, you're operating at a loss. This can be summed up in a basic formula:

Daily Profit = Coins Mined × Coin Price − Electricity − Other Costs

Electricity is typically the biggest cost. And calculating it is straightforward:

Electricity Cost = Power Consumption × Electricity Rate × 24 Hours

For example, a miner with 3300W power consumption at $0.03/kWh would incur about $2.38 in daily electricity costs. If the mined coins are worth $5, there's still a margin. But if the electricity rate rises to $0.07/kWh, the daily cost jumps to $5.55—meaning you could already be in the red.

So, the break-even point isn’t a fixed number. It’s influenced by the coin price, electricity cost, and mining efficiency. Often, the issue isn’t that “prices dropped so mining is no longer profitable,” but rather “your machine can’t survive at this electricity rate.”

Four Key Factors to Consider Before Powering Off

1. Mining Efficiency (J/TH)

Efficient miners are better equipped to weather market downturns. Take the Sealminer A2 Pro Hyd, for example—a low-power machine that maintains a good revenue-to-cost ratio even when prices fall. At $0.05/kWh, its break-even price is around $36,800. In comparison, an older model like the S19 J Pro may need Bitcoin to stay above $70,000 just to break even.

A2 Pro Hyd Revenue Forecast

S19 J Pro Revenue Forecast

2. Electricity Costs

Electricity is a core factor in your profitability. In areas with cheap electricity, mining can still be viable even during a market correction. But once rates hit $0.08/kWh or higher, even top-tier miners struggle to survive. As mentioned above, the same 3300W miner only costs $2.38 per day at $0.03/kWh. But at $0.08/kWh, that jumps to $6.34—meaning you’re losing money the moment you power on. Even a slight price recovery might not cover the power bill. Electricity isn’t just a background factor—it’s the main gatekeeper determining whether your rig keeps running.

3. Price Volatility

Mining decisions are long-term in nature. If the price dip is short-term, or network difficulty is about to drop, it could actually be a strategic opportunity. If others shut down and you stay online, your share of the rewards might increase.

4. Fiat vs. Coin-Based Mindset

Whether you shut down often depends on how you view your mined coins. If you follow a fiat mindset—selling coins immediately for USD—then you must constantly monitor your break-even point. For example, if you mine 0.0001 BTC worth $110 today but pay $125 in electricity, you’ve lost $15. In that case, shutting down might save you money. But if you’re a coin-maximalist, holding for long-term gains, aiming to sell when the price hits $500 or $1,000, then today’s loss may not matter. It’s like buying Bitcoin on sale during a bear market. Even if you're currently paying more in electricity, you may still want to keep mining to accumulate coins. This strategy may seem unprofitable short term, but if you believe in long-term growth, the payoff could be greater.

When Should You Consider Shutting Down?

If you’re in a region with high electricity costs and prices remain low for an extended period, continuing to mine might bring real financial losses. This is especially true if you're running older, less efficient hardware. Even if your machine still produces coins, your daily profit may already be negative. If you're also under cash flow pressure and need to cut operating costs, temporarily shutting down can be a smart move. Turning off your machines doesn’t mean giving up—it’s about preserving resources for the next opportunity.

When Does It Make Sense to Keep Running?

If you have access to cheap electricity or your miners are highly efficient, you may still generate profit even during downturns. If you believe in Bitcoin’s long-term value and prefer to accumulate coins while prices are low, mining now may be more cost-effective than buying later. There’s also the scenario where others shut down due to fear, leading to a drop in network difficulty. In that case, your share increases, and staying online could become even more rewarding. In situations like these, continuing to mine might not just be sustainable—it could give you a competitive edge.

More Than Just “On” or “Off”: Smarter Strategies Exist

Faced with market fluctuations, miners are not limited to simply turning machines on or off. Flexible strategies can provide more breathing room. One option is to lower the miner’s frequency—reducing power consumption while keeping the system running. This is especially effective during summer when electricity costs spike. Read ‘Mining Machine Operation Modes: Differences and Use Cases’ to learn more about Sealminer’s Low Power Mode (LPM), Normal Mode (NPM), and High Performance Mode (HPM).

Another tactic is to relocate your miners to regions with lower electricity costs—even if just for a short term—to help improve margins. You can also switch to a more efficient mining pool with lower fees and steadier payouts. Most importantly, you can set up price alerts and use a mining calculator to define your break-even threshold. That way, you can make data-driven decisions on whether to shut down, rather than reacting emotionally.

Use a Mining Calculator to Analyze, Not Panic

Deciding whether to shut down your mining operation should not be based on gut feelings or market sentiment. You need to ask yourself: How much am I earning each day? What’s my electricity cost? At what price am I breaking even?

These questions can be answered with one simple tool. Try the Bitdeer Mining Calculator. Just input your miner model, electricity rate, and current coin price, and it will estimate your expected earnings.

Mining is fundamentally a long-term strategy. Short-term price swings aren’t inherently dangerous—it’s the lack of information and planning that leads to poor decisions. Stay rational. Learn how to calculate. And don’t panic the next time the market dips.

Disclaimer: The mining profitability calculator is a simplified tool intended for general informational purposes only. Results are based solely on parameters input by users and do not account for major variables that impact real-world mining performance, including but not limited to changes in network difficulty, mining pool fees, or market volatility. While we are committed to producing high-performance mining hardware, this tool does not constitute, nor should it be interpreted as, a guarantee or promise of actual earnings, profitability, or performance. Estimates generated are not financial forecasts and do not represent future outcomes.