How Does the Efficiency of Mining Hardware (Joules per Terahash) Affect a Miner’s Profit Margin?

Hardware efficiency, measured in Joules per Terahash (J/TH), is the most critical factor for variable costs. A lower J/TH means the miner consumes less electricity for the same amount of hash rate.

Since electricity is the main operating cost, better efficiency directly translates to a lower cost of production per coin. This widens the profit margin and allows the miner to remain profitable at lower coin prices or higher network difficulties.