How Does an ASIC’s Power Consumption Factor into the Profitability Equation?

An ASIC's power consumption, measured in Watts, is a critical component of the operating cost. The profitability equation must account for the electricity cost per Kilowatt-hour (kWh) multiplied by the ASIC's power draw.

The most profitable ASICs are those with the highest efficiency, meaning they generate the most Terahashes per Joule of energy consumed, not just the highest raw hash rate. Lower power consumption directly increases the net profit margin.