Bitcoin Miners Face Record Revenue Drop Amid Rising Challenges

In August, Bitcoin miners experienced their lowest monthly revenue in a year, falling 57% from the peak earlier in 2024.

This sharp decline raises concerns about whether Bitcoin miners have truly weathered their financial struggles or if another major market downturn is on the horizon.

Last month, Bitcoin miners earned $827.56 million, a decrease of 10.5% from July’s $927.35 million, though this figure was still 5% higher than in August 2023. The revenue drop from March 2024’s peak of $1.93 billion, when Bitcoin reached an all-time high of $73,500, is particularly striking.

The revenue in August mirrors levels not seen since September 2023, when miners made $727.79 million. Additionally, Bitcoin production fell to 13,843 BTC, down from 14,725 BTC in July. The recent Bitcoin halving event has significantly increased mining difficulty, reducing rewards by half to 3.125 BTC. This, combined with lower transaction volumes, has exacerbated financial strains for miners.

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Mining difficulty also surged to a new high of 89.47 trillion in August, impacting profitability. Over the past weekend, miners sold 2,655 BTC, totaling around $154 million.

In response, some mining companies are diversifying their revenue streams, such as providing computational power to the AI industry. Major firms like Marathon Digital are following MicroStrategy’s model by raising $250 million in convertible notes to purchase BTC, while others like Vortex Brands are investing in MicroStrategy shares as a proxy for Bitcoin.

Following the recent halving event, miners became net sellers to cover costs. With ongoing revenue challenges, a renewed selling spree by miners could be imminent. Historically, September has been a weak month for Bitcoin, potentially leading to further declines in BTC prices, which are already under pressure and trading below key support levels of $58,450. This trend could push Bitcoin down towards $50,000.

Alexander Stefanov