Bitcoin

Bitcoin Miners’ Revenue Continues To Fall

Bitcoin mining revenue fell below $1 billion in August due to a drop in investor interest, resulting in a drop in price as well as difficulty in mining the cryptocurrency.
Bitcoin Miners' Revenue Continues To Fall 5

Bitcoin mining revenue has brought huge profits to crypto companies such as Bitfury, Bitmain, AntPool, Core Scientific Inc., Marathon Digital Holdings Inc. And Riot Blockchain Inc. over the years.

Over the past four months, starting in May when digital asset prices hit new lows due to the collapse of the Terra ecosystem, mining revenue has been on a downward trend.

Despite a 10% increase in revenue from $597.35 million in July to around $657 million in August, revenue from the largest cryptocurrency by market capitalization is still far below the $1 billion threshold that that miners have in 2021.

Bitcoin miner revenue chart by month. Source: The Block

Due to the way mining revenue is calculated, most of the drop is attributed to the drop in the price of the leading cryptocurrency

Mining revenue is calculated by multiplying the total amount of BTC earned as a reward by the price of the digital asset for a certain period of time. In August 2022, BTC traded within a price range of $19,600.79 and $25,135.59 after opening and closing the month at $23,336.72 and $20,049.76, respectively.

BTC daily chart. Source: CoinCu

YChart data shows Bitcoin miners’ peak daily revenue of $24.65 million on Aug 19.

Like most of the months prior to August, BTC has seen a year-over-year decline in revenue. Miner revenue in August 2021 is about $1.4 billion, and total rewards earned from last month are down 53% from this value.

Bitcoin became extremely difficult to mine last month. BTC.com data shows that BTC mining difficulty has skyrocketed 9% over the past three weeks, from 28.17 trillion on August 4 to 30.98 trillion on August 31.

Although the mining difficulty shows a strong and growing network, it also leads to lower profits due to more computing power required, but the value of the coin is still under $25,000.

Bitcoin Mining Difficulty Chart. Source: BTC.com

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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