Bitcoin miners faced their toughest month of 2024 in August, with mining revenue plunging to its lowest level since September 2023. Data from Bitbo revealed that miners generated $827.56 million in August, a sharp decline of $99.75 million from the $927.35 million earned in July. This significant drop underscores the ongoing impact of Bitcoin’s fourth halving in April, which has made mining more difficult and less profitable.
In comparison, September 2023 saw miners earning just $727.79 million as Bitcoin’s price struggled around $25,000. Since then, Bitcoin’s value has more than doubled, currently trading at approximately $57,500. However, despite the increase in Bitcoin’s price, mining revenue has not kept pace, highlighting the challenging conditions miners face.
Adding to the financial strain, on-chain transaction fees also decreased by $4.14 million in August compared to July, contributing further to the revenue slump. Mining firms like Foundry USA and Antpool, which were among the largest contributors to the Bitcoin network, found 1,248 and 1,074 blocks respectively, accounting for 29.10% and 25.04% of the total blocks mined.
The decline in revenue is closely linked to a drop in transaction volumes. In August, miners extracted 13,843 BTC, slightly down from the 14,725 BTC mined in July. This reduction comes in the wake of the April halving, which not only increased the difficulty of mining but also led to a decrease in transaction volumes, further squeezing profits.
The financial impact of these challenges has extended to the stock market as well, with mining companies like Marathon Digital Holdings, Riot Blockchain, and CleanSpark experiencing consecutive declines in their stock prices following the April halving.
August’s revenue figures mark a critical juncture for Bitcoin miners, who are now grappling with the economic pressures of low hash prices. However, there is hope that if hash prices rise alongside increased network activity, miners could see a recovery in their fortunes.
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