Financial Squeeze Tightens for Bitcoin Miners as Earnings Continue to Fall

On Friday, Bitcoin’s hashprice was $56.95 per petahash per second (PH/s), but by Sunday, it had dropped to $51.66 per petahash. Over the last 100 blocks, bitcoin miners averaged about 3.55 BTC for each block they mined, indicating that bitcoin miners are receiving less than half a BTC per block in onchain fees.

Bitcoin Miners See Earnings Cut in Half

Bitcoin miners are currently earning significantly less BTC than before the halving event, and the high fees they previously enjoyed after block height 840,000 have been erased. These initial high fees may have provided some miners with enough financial buffer to withstand the current downturn in revenue. However, those who did not benefit from these fees might face tougher challenges ahead.

As of April 28 at 5 a.m. Eastern Time, Bitcoin’s hashprice, or the expected value of 1 PH/s of hashing power per day, was approximately $51.66 per petahash. Before the halving event, which reduced BTC’s block rewards from 6.25 BTC to 3.125 BTC, miners were earning over $100 per petahash per day. Regardless of perspective, miners have experienced a significant drop in revenue, akin to a drastic 50% off clearance sale.

The buffer gained post-halving has helped maintain a strong hashrate, although there has been a slight decrease, remaining above the 630 exahash per second (EH/s) mark. Data from blocks 840,849 to 840,949 showed an average reward of 3.83 BTC per block, but this figure fell in subsequent blocks. On April 27, between blocks 841,057 and 841,157, miners averaged 3.56 BTC, which includes the newly minted coins and fees. Between blocks 841,125 through 841,225, miners averaged 3.55 BTC.

In terms of financial runway, BTC miners hit a record in March, amassing over $2 billion in revenue, with approximately $85 million from onchain fees. April’s figures are also strong, with revenues at $1.67 billion and $269 million from onchain fees. With bitcoin’s price currently above $63,000 per unit and potentially declining further, miners may face increasing financial pressures. Prices falling below the $55,000 mark could further weaken revenue amid an already fragile market.

What do you think about the mining revenue losses miners are experiencing? Share your thoughts and opinions about this subject in the comments section below.

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