- Bitcoin mining daily revenue has dropped below $3 million, a significant decrease from the daily average of $6 million in the first four months of 2024.
- Bitcoin miners’ income saw a significant drop in May following the completion of the BTC halving.
- The halving mechanism, which was planned to make the release of the total supply of 21 million increasingly difficult, reduced mining rewards from 6.25 BTC to 3.125 BTC on April 20.
Bitcoin miners are facing a significant drop in daily revenue, following the completion of the BTC halving in April 2024. The decrease in mining rewards has led to a drop in daily income from an average of $6 million to below $3 million.
Bitcoin Miners Face a Significant Drop in Revenue
Following the completion of the BTC halving in April 2024, Bitcoin miners have seen a significant decrease in their daily income. The halving mechanism, which was implemented to make the release of the total supply of 21 million Bitcoin increasingly difficult, reduced mining rewards from 6.25 BTC to 3.125 BTC. Despite a temporary increase in daily earnings due to the release of Bitcoin Runes, miners faced a significant income drop in May, with total revenue from block rewards and transaction fees falling to $26.3 million on May 1.
Miners Reorganize Operations to Stay Profitable
According to data from BlockchainCom, BTC miners were earning an average of $6 million per day before the halving. However, in May, similar income models were recorded, signaling a new normal in Bitcoin mining revenues. To remain profitable in the next phase of the Bitcoin economy, miners had to reorganize their operations. Otherwise, they would have to rely solely on Bitcoin’s high market value to support their operations. CryptoQuant CEO Ki Young Ju stated that under current conditions, Bitcoin needs to be held above $80,000 to make mining profitable after the halving. As a result, many miners took measures to upgrade their mining equipment to reduce long-term operational costs while staying competitive.
Bitcoin Mining Firms Invest in Equipment Upgrades
For instance, Bitcoin mining firm Bitfarms allocated $240 million to triple its hash rate. Jeffrey Lucas, the CFO of Bitfarms, shared that the company was trying to supply 88,000 high-efficiency equipment: “The transformative equipment upgrade moves Bitfarms forward in terms of scale and profitability during the Bitcoin halving period. This is a game-changer that triples our hash rate to 21 EH/s, increases our targeted operating capacity by 83% to 440 megawatts (MW), and increases fleet efficiency by 40% to 21 w/TH.” Despite these efforts, Bitfarms recorded its lowest monthly earnings in over two years in April, with 269 Bitcoin.
Conclusion
The significant drop in Bitcoin mining revenue following the BTC halving in April 2024 has led miners to reorganize their operations and invest heavily in equipment upgrades. Despite these efforts, the profitability of Bitcoin mining remains uncertain, with firms like Bitfarms recording their lowest monthly earnings in over two years. As the Bitcoin economy enters its next phase, miners will need to continue adapting their strategies to stay profitable.
