Bitcoin Miner Revenues Plunge to 12-Month Low Amid Post-Halving Output Decline

Bitcoin miners experienced a significant decline in revenues, which reached a 12-month low in August 2024, as reported by Bitbo, a leading Bitcoin analytics dashboard. This drop marks a continued downward trend since the network’s April 2024 halving, which has drastically reduced mining volumes and revenues.

Data from Bitbo indicates that Bitcoin mining revenues fell to approximately $827 million in August, a level not seen since September 2023. This figure represents a substantial decrease from pre-halving peaks of nearly $2 billion recorded in March 2024. The halving event, a mechanism embedded into the Bitcoin network that occurs roughly every four years, cuts the number of bitcoins mined per block in half. The most recent halving in April reduced the reward from 6.25 BTC to 3.125 BTC per block.

Historically, each halving has resulted in a significant reduction in monthly mined Bitcoin. For instance, the volume of Bitcoin mined has fallen from highs of nearly 337,000 BTC in May 2011 to under 14,000 BTC in August 2024, as per Bitbo’s data.

According to an August 23 report from JPMorgan, Bitcoin miners are navigating the fourth halving event, which has halved the daily revenue potential and tightened profit margins. The report highlighted that the five publicly traded Bitcoin miners covered by JPMorgan produced 5,854 BTC in Q2 2024, a 28% decline from the previous quarter.

In response to the reduced profitability, Bitcoin miners are diversifying their business models. Companies such as Core Scientific, Hive Digital Technologies, and Hut 8 are investing in sectors like artificial intelligence (AI) to mitigate reliance on the volatile BTC mining market. Hive Digital Technologies reported a 36% increase in sales in the second quarter of 2024 after expanding its services to include AI applications.

“The synergy is simple: AI companies need energy, and Bitcoin miners have it,” stated Matthew Sigel, head of digital assets research at VanEck, in an August 16 report.

Meanwhile, others like Bitdeer Technologies Group, based in Singapore, are focusing on enhancing mining efficiency through next-generation equipment. Bitdeer reported a nearly 50% year-over-year increase in gross profits for Q2 2024, driven largely by the expansion of its in-house Bitcoin mining capacity.

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