Bitcoin miners celebrated a historic milestone in March, surpassing $2 billion in earnings, setting a new all-time high. The staggering figure, revealed by analytics from The Block, surpasses the previous record set in May 2021 when miners collectively earned $1.7 billion.
Miners’ earnings primarily comprise rewards for successfully mined blocks and transaction fees generated on the Bitcoin network. Notably, transaction fees contributed significantly to March’s revenue, totaling $85.8 million, marking a record monthly figure.
Leading the pack was Foundry USA, dominating the mining landscape by contributing 1,312 blocks, representing 29.74% of the total blocks mined. Antpool followed closely with 989 blocks, trailed by Viabtc, F2pool, and Binance Pool.
However, the impending reduction in block rewards, scheduled to decrease from 6.25 BTC to 3.125 BTC in April, has prompted a recalibration of daily commission volumes, settling around $2 million. Early indications in April suggest minimal fluctuation in this metric.
Galaxy Digital analysts anticipate that the upcoming halving event will render approximately 15% to 20% of the total computing power of the Bitcoin network unprofitable. As a result, miners are expected to decommission less efficient equipment, consolidating operations around the most effective hardware.
Furthermore, there are reports of outdated Bitcoin mining rigs being relocated from the United States to regions offering lower energy costs, such as Africa, in response to the halving’s economic impact.
Prospective buyers are strategically awaiting the completion of the halving event to capitalize on reduced prices for mining equipment. For instance, the cost of used S19s, which stood at approximately $7,000 in March 2022, has plummeted to $427, presenting an attractive opportunity for savvy investors.
In summary, Bitcoin miners’ unprecedented earnings in March underscore the industry’s resilience and adaptability amidst impending changes. As the halving event approaches, miners are bracing for operational adjustments and strategic moves to maintain profitability in a dynamic market landscape.
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