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The daily revenue from Bitcoin mining has dropped below $3 million, a significant decrease from the daily average of roughly $6 million in the first four months of 2024. This decline can be attributed to the impact of the fourth Bitcoin halving event, which began in April.
The halving mechanism limits the issuance of Bitcoin to 21 million over decades. As a result of the April 20 halving, mining rewards were reduced from 6.25 BTC to 3.125 BTC per block.
While initial interest around the halving and the launch of Bitcoin Runes temporarily buoyed miners’ daily earnings, May saw a steep decline. On May 1, total revenue from block rewards and transaction fees dropped to a new low of $26.3 million.
Before the halving, Bitcoin miners were earning an average of about $6 million per day. Now, in May, miners have experienced consistent lower earnings, signaling a new normal for Bitcoin mining revenue. Notably, the daily earnings hit a peak of over $107 million on April 20, the highest in Bitcoin history.
To counteract the significant revenue drop, miners worldwide are re-evaluating operations to maintain profitability in the evolving Bitcoin economy. Miners are aiming to rely on Bitcoin’s high market value and improved mining equipment to stay competitive and reduce operational costs.
Learn more about how to stay profitable as a home Bitcoin miner in Cointelegraph’s guide.
CryptoQuant CEO Ki Young Ju suggested that Bitcoin needs to maintain a value above $80,000 to keep mining profitable post-halving under the current conditions. Most miners have taken steps to upgrade their mining equipment, aiming to cut long-term operational costs.
For instance, Bitcoin mining firm Bitfarms allocated $240 million to triple its hash rate. Bitfarms CFO Jeffrey Lucas explained the company plans to acquire 88,000 highly efficient Bitcoin miners, a move that is set to significantly enhance the firm’s scale and profitability.
Despite these efforts, Bitfarms reported its lowest monthly earnings in over two years in April, with just 269 Bitcoin mined.