Crypto News- Bitcoin miners are feeling the sting as earnings take a nosedive in May following the fourth Bitcoin halving event. With the halving event reducing mining rewards from 6.25 BTC to 3.125 BTC on April 20, the anticipated effects are now hitting hard.
Before the halving, miners were raking in approximately $6 million per day, but May saw a stark contrast as daily earnings plummeted. May 1 marked a new low with total revenue from block rewards and transaction fees dropping to a meager $26.3 million.
Bitcoin Miners Face Dismal Returns: Revenue Hits Annual Low After Halving
This decline comes despite the initial buzz surrounding the halving and the launch of Bitcoin Runes, which briefly boosted miners’ earnings. Notably, April 20 saw a historic peak in daily earnings, crossing the $107 million mark for the first time ever.
Now, miners are forced to adapt to this new reality, with many strategizing to stay profitable in the face of dwindling earnings. Anticipating the drop, miners worldwide have been upgrading their equipment to cut long-term operational costs and maintain competitiveness.
Bitcoin’s Profitability Threshold: Insights from CryptoQuant CEO
CryptoQuant CEO Ki Young Ju suggests that Bitcoin needs to maintain a value above $80,000 for mining to remain profitable post-halving. In response, mining firms like Bitfarms are aggressively investing in equipment upgrades. Bitfarms, for instance, has allocated $240 million to triple its hash rate and significantly boost efficiency.
Despite these efforts, Bitfarms saw its lowest monthly earnings in over two years in April, underscoring the challenges miners are currently facing.
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