As an experienced financial analyst, I have closely monitored the Bitcoin mining industry and its revenue trends. The recent Bitcoin halving event, which took place on May 11, led to a significant reduction in mining rewards from 6.25 BTC per block to 3.125 BTC. While some initial hype around the event temporarily sustained miners’ daily earnings, a strong revenue drop was recorded in May.
The income derived from Bitcoin (BTC) mining took a substantial hit in May due to the aftermath of the fourth Bitcoin halving.
As a researcher studying the intricacies of Bitcoin, I can explain that the Bitcoin network was engineered with a built-in mechanism called halving, which gradually decreases the reward for mining new blocks by half approximately every four years. The most recent halving occurred in April 2020, reducing the miner’s reward from 6.25 BTC to 3.125 BTC. This process is designed to limit the overall issuance of Bitcoin to 21 million coins over an extended period.
The excitement surrounding Bitcoin Halving and the introduction of Bitcoin Runes initially boosted miners’ daily income. however, a significant decline in revenue was observed starting in May. On May 1st, the combined earnings from rewards and fees reached an all-time low of $26.3 million.
On the other hand, Bitcoin miners raked in an average of approximately $6 million daily based on statistics obtained from Blockchain.com.
As an analyst, I’ve observed that the revenue patterns from all other days in May were remarkably consistent. This observation suggests a new normal in Bitcoin mining revenue moving forward. Interestingly enough, mining revenue reached its peak on April 20th, resulting in a record-breaking daily earnings of over $107 million – an unprecedented achievement in the history of Bitcoin mining.
As a researcher studying the Bitcoin economy, I’ve noticed an anticipated significant drop in profitability for miners. To mitigate this, miners worldwide have been strategically reevaluating their operations in preparation for the next phase of Bitcoin’s economy. Without these adjustments, they would be heavily reliant on Bitcoin’s high market value alone to sustain their businesses.
Read CryptoMoon’s learners’ guide to know more being a profitable Bitcoin miner from home.
According to the CEO of CryptoQuant, Ki Young Ju, Bitcoin needs to remain above $80,000 for mining to remain profitable following the next halving event, given current market conditions. Nevertheless, most miners have taken preventative steps by upgrading their mining equipment to minimize future operational expenses and maintain competitiveness in the industry.
Bitfarms, a Bitcoin mining company, announced plans to invest $240 million to boost its hash rate threefold. In our conversation with CryptoMoon, Bitfarms CFO Jeffrey Lucas disclosed their intention to acquire 88,000 advanced Bitcoin miners for this purpose.
“The transformational fleet upgrade propels Bitfarms in scale and profitability amid the Bitcoin halving. 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 improves fleet efficiency by 40% to 21 w/TH.”
As a researcher studying Bitfarms’ financial performance, I’ve discovered that the company recorded its lowest monthly Bitcoin earnings of approximately 269 coins in the past two years during the month of April.
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2024-05-06 11:29