Bitcoin Miners Record Year-low Daily Revenue
12 Aug, 2024 ● Crypto News
Revenue generated by Bitcoin miners, primarily from block rewards and transaction fees, consistently declined over a two-week period, reaching a new yearly low on Aug. 11.
On Aug. 11, daily earnings for Bitcoin miners dropped to a new yearly low of $2.54 million, a figure not seen since October 2023.
The Bitcoin mining community had long anticipated a significant decrease in revenue following the Bitcoin halving event on April 20, which reduced mining rewards from 6.25 BTC to 3.125 BTC.
As predicted, daily revenue from Bitcoin mining fell below $3 million for the first time in May. By comparison, miners were earning approximately $6 million per day during the first four months of 2024.
However, rising Bitcoin prices and excitement surrounding other protocols within the Bitcoin ecosystem helped sustain mining operations financially.
Additionally, major Bitcoin mining companies like Bitfarms had preemptively upgraded their mining equipment to stay profitable despite revenue uncertainties.
Following the significant drop in May, Bitcoin miners’ daily revenue briefly spiked before entering a two-week decline, hitting a new yearly low.
The primary factors contributing to the decline in revenue include a prolonged bear market, a decrease in Bitcoin’s market price, increased network difficulty, and resulting liquidations.
Despite the sharp decline in daily revenue, Canadian Bitcoin miner Bitfarms saw its stock rise by nearly 22% after reporting better-than-expected second-quarter earnings.
On Aug. 8, Bitfarms CEO Ben Gagnon shared the company’s strategy to maintain profitability on a month-over-month basis. He stated:
“We continue to dramatically alter our operating profile via our ongoing fleet upgrades and our geographic expansion.”
Bitfarm’s total revenue of $42 million was down 16% from the first quarter and fell short of analyst expectations. The company attributed the decrease to smaller block rewards in its earnings report.
Sources:
https://cointelegraph.com/news/bitcoin-mining-revenue-decline-yearly-low-august-2024
