Bitcoin Miners Record Lowest Revenue in Nearly a Year

Bitcoin mining phone

Bitcoin miners earned $827 million in revenue last month, marking the lowest since September 2023.

Bitcoin miners have recorded their lowest revenue in nearly a year, as the number of coins mined fell in August.

According to on-chain data from Bitbo, bitcoin miners’ revenue generated approximately $827.56 million in August, declining over 10.5% from July’s $927.35 million. On the bright side, the revenue was up 5% from August 2023.

Over 13.8K BTC Mined Last Month

In August, 13,843 BTC was mined, a decrease from the 14,725 BTC generated in the previous month. The leading miners for August include Foundry USA, which mined more than 1,240 blocks, representing a 30% share, and Antpool, which mined 1,074 blocks, accounting for 25.04% of the total.

The decrease in revenue comes as miners faced pressure from declining transaction volumes and an increase in bitcoin mining difficulty, which intensified following April’s halving event that slashed block rewards by 50% to 3.125 BTC.

According to data from Blockchain.com, miners’ median fees accounted for just 2% of the overall block reward in August. This suggests that transaction volume was probably lower than usual or users were not opting for higher fees to expedite transactions. Additionally, the data revealed that daily confirmed transactions by miners reached a year-to-date (YTD) high in July, hitting approximately 631,648, which declined slightly to 594,871 by the end of August.

Mining difficulty has also increased, reaching a record high of 89.47 trillion in August, up from 86.87 trillion in July. This indicates that more computing power was required to discover a new block and earn a reward, thereby increasing the cost of mining for miners.

How Bitcoin Halving Enters the Picture

Historically, the halving event propels BTC’s price to greater heights approximately every four years. Bitcoin halving drives miners to optimize energy consumption and increase hash power, contributing to the sustainability and long-term viability of the Bitcoin ecosystem. The most recent halving event, which occurred in April, saw the block reward for miners go from 6.25 BTC to 3.125 BTC.

BTC was up 0.44% in the past 24 hours at press time, changing hands around $58,380. However, the crypto asset has fallen over 5% in the past week and more in the past month.