Bitcoin miners record lowest daily revenue of 2024

Arijit Sarkar14 hours agoBitcoin miners record lowest daily revenue of 2024Bitcoin miners’ daily revenue hit a new yearly low of $2.5 million, but strategic overhauls keep some companies profitable amid industry challenges.2816 Total views18 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onRevenue earned by Bitcoin miners, primarily through block rewards and transaction fees, declined consistently over two weeks to record a new yearly low on Aug. 11.

On Aug. 11, daily earnings of the Bitcoin (BTC) mining community dipped to a new yearly low of $2.54 million, a number last seen in October 2023.Daily Bitcoin mining review in terms of US dollars. Source: Blockchain.com

The Bitcoin mining community had long anticipated a significant drop in revenue following the Bitcoin halving event on April 20, which reduced mining rewards to 3.125 BTC from 6.25 BTC.The need for a new Bitcoin mining strategy

As expected, daily revenue from Bitcoin mining dipped under $3 million for the first time in May. In contrast, the mining community earned roughly $6 million per day in the first four months of 2024.

However, rising Bitcoin prices, along with hype around other protocols within the Bitcoin ecosystem, sufficed the finances to run mining operations. In addition, major Bitcoin mining firms, such as Bitfarms, preplanned an overhaul of mining equipment to remain profitable amid revenue uncertainties.

Since the significant drop in May, Bitcoin miners’ daily revenue momentarily spiked before recording a two-week freefall to their new yearly all-time low. Primary drivers for receding revenue include an ongoing bear market, reduced Bitcoin market price, increased network difficulty and resultant liquidations.

Related:Grayscale sheds $20B from Bitcoin and Ether ETFs

Check out Cointelegraph’s beginners’ guide to learn how to mine Bitcoin.Planning a safety net for falling revenues

Amid a steep decline in daily revenue, Canadian Bitcoin miner Bitfarms stock surged nearly 22% following the release of better-than-expected second-quarter earnings.Bitfarms stock climbed nearly 22% over a day. Source: Google Finance

On Aug. 8, Bitfarms CEO Ben Gagnon revealed the company’s strategy to remain profitable month-over-month. He said:“We continue to dramatically alter our operating profile via our ongoing fleet upgrades and our geographic expansion.”

Bitfarm’s total revenue of $42 million was down 16% from the first quarter and was lower than analyst estimates. The miner said in its earnings report the decrease was due to smaller block rewards.

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