- With Bitcoin (BTC) reaching all-time high prices, Bitcoin miners also achieved record profits during the same period.
- According to CryptoQuant data, miners’ daily revenue surpassed $78.6 million on March 7, exceeding the peak reached in April 2021 during the last crypto bull market.
- As Bitcoin’s revenues increase, so does energy consumption. According to a recent report, Bitcoin miners reached record levels of energy consumption last month.
Bitcoin miners’ daily revenue set a new record as the halving event approaches; Bitcoin price remains above $70,000!
Bitcoin Miners’ Daily Revenue Sets Record
With Bitcoin (BTC) reaching all-time high prices, Bitcoin miners also achieved record profits. According to on-chain data, Bitcoin miners’ daily revenue reached a new record level since April 2021.
According to CryptoQuant data, miners’ daily revenue surpassed $78.6 million on March 7, exceeding the peak reached in April 2021 during the last crypto bull market. Bitcoin miners earn revenue from newly minted coins rewarded for verifying transactions on the blockchain and fees paid by users.
This increase in miner revenues coincides with Bitcoin’s 70% rally so far this year. The cryptocurrency reached nearly $72,881 on Monday, setting a new record and was trading at $72,668 on Tuesday at 11:31 AM Singapore time.
As revenues for Bitcoin increase, so does energy consumption. According to a recent report, Bitcoin miners reached record levels of energy consumption last month. This increase in mining activity contributed to sustaining and boosting BTC’s ongoing and rising prices amid a supply shock.
According to Coin Metrics’ estimate, miners consumed a record 19.6 gigawatt-hours of energy last month, representing a significant increase from the 12.1 gigawatt-hours recorded during the same period in 2023. This marks an increase of over 61%.
The U.S. Treasury Department is proposing a consumption tax targeting companies engaged in digital asset mining. This tax would constitute 30% of the electricity cost used for mining activities. If the proposal becomes law, miners will have to disclose details such as the amount and source of electricity consumed and associated expenses for externally sourced energy.
Despite Miner Sales, Treasury Balance Hits ATH
In a notable development, Bitcoin miner treasuries have withdrawn over 14,128 BTC, or over $1 billion, since the beginning of the year. Recent data indicates that there were net outflows from BTC miners for most of last month. However, miners still hold 1.82 million BTC, valued at $131 billion – representing the highest value recorded in U.S. dollars.
Interestingly, the actions of Bitcoin miners seem to contrast with those of ETFs. While miners are selling off BTC assets, institutional investors, acting on behalf of ETF shareholders, appear to be buying coins. The upcoming Bitcoin halving scheduled for April has accelerated bets on price increases, as it reduces miner rewards by half and decreases the growth of coin supply.
This development signals a significant shift for miners amid challenging conditions of the crypto winter, with some facing conditions bordering on bankruptcy. Notably, Valkyrie Bitcoin Miners ETF, which includes companies such as CleanSpark Inc. and Marathon Digital Holdings Inc., experienced over a 100% increase last year.
