Bitcoin Mining Earnings Plunge After Halving Event

Earnings from Bitcoin mining saw a significant drop in May following the fourth Bitcoin halving event. The halving mechanism, which limits the issuance of Bitcoin, reduced mining rewards from 6.25 BTC to 3.125 BTC. Despite initial excitement and the launch of Bitcoin Runes, miners experienced a strong decline in daily earnings. In fact, on May 1, total revenue from block rewards and transaction fees hit a new low of $26.3 million. This trend continued throughout the month, indicating a new normal in Bitcoin mining revenue. Interestingly, mining revenue reached an all-time high of over $107 million on April 20, coinciding with the halving. In anticipation of this drop, miners globally adjusted their operations to remain profitable in the evolving Bitcoin economy. To do so, they upgraded their mining equipment to reduce long-term costs and stay competitive. For instance, Bitfarms, a Bitcoin mining firm, invested $240 million to triple its hash rate. Despite these efforts, Bitfarms recorded its lowest monthly earnings in over two years in April. To maintain profitability post-halving, Bitcoin needs to hold above $80,000, according to CryptoQuant CEO Ki Young Ju. Overall, miners are taking proactive measures to adapt to the changing landscape and ensure their operations remain sustainable.

Sources :
- CoinTelegraph