Bitcoin Mining Revenue Hits Yearly Low Post-April Halving
Bitcoin miners are experiencing a significant drop in revenues, reaching their lowest levels in a year.
This decline is attributed to the network’s halving event in April, which has halved the rewards for mining Bitcoin and led to reduced mining output and earnings.
In August 2024, monthly revenues for Bitcoin mining fell to around $827 million, according to data from Bitbo. This figure is the lowest since September 2023 and is substantially less than the nearly $2 billion in revenues recorded before the halving in March 2024.
The Bitcoin network undergoes a halving event approximately every four years, which cuts the reward for mining new blocks by half. The most recent halving reduced the reward from 6.25 BTC to 3.125 BTC per block. Consequently, the amount of Bitcoin mined each month has decreased, dropping from nearly 337,000 BTC in May 2011 to under 14,000 BTC in August 2024.
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A report from JPMorgan notes that this halving has reduced daily mining rewards, squeezing profit margins for Bitcoin miners. In the second quarter of 2024, the five publicly traded Bitcoin mining companies covered by JPMorgan mined 5,854 BTC, marking a 28% decrease from the previous quarter.
In response to these challenging conditions, some Bitcoin miners are shifting their business strategies. Companies like Core Scientific, Hive Digital Technologies, and Hut 8 are now investing in artificial intelligence (AI) applications to diversify their revenue streams. For example, Hive saw a 36% increase in sales in Q2 2024 by expanding into the AI sector.
Others, such as Bitdeer Technologies Group, are focusing on upgrading their mining equipment to enhance efficiency. Bitdeer reported a roughly 50% year-over-year increase in gross profits for Q2 2024, primarily due to nearly doubling its in-house Bitcoin mining capacity.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
