The revenue earned by Bitcoin (BTC) miners, primarily through block rewards and transaction fees, declined consistently over 2 weeks to record a new yearly low on Aug. 11.
On Aug. 11, daily earnings of the Bitcoin mining community dipped to a new yearly low of $2.54 million, a number last seen in October 2023.
The Bitcoin mining community had long anticipated a significant drop in revenue following the Bitcoin halving event in April 20, which reduced mining rewards to 3.125 BTC from 6.25 BTC.
The need for a new Bitcoin mining strategy
As expected, daily revenue from Bitcoin mining dipped under $3 million for the first time in May. In contrast, the mining community earned roughly $6 million per day in the first four months of 2024.
However, rising Bitcoin prices, along with hype around other protocols within the Bitcoin ecosystem, sufficed the finances to run mining operations. In addition, major Bitcoin mining firms, such as Bitfarms, preplanned an overhaul of mining equipment to remain profitable amid revenue uncertainties.
Since the significant drop in May, Bitcoin miners’ daily revenue momentarily spiked before recording a two-week freefall to their new yearly all-time low. Primary drivers for receding revenue include an ongoing bear market, reduced Bitcoin market price, increased network difficulty and resultant liquidations.
Related: Grayscale sheds $20B from Bitcoin and Ether ETFs
Check out Cointelegraph’s beginners’ guide to learn how to mine Bitcoin.
Planning a safety net for falling revenues
Amid a steep decline in daily revenue, Canadian Bitcoin miner Bitfarms stock surged nearly 22% following the release of better-than-expected second-quarter earnings.
On Aug. 8, Bitfarms CEO Ben Gagnon revealed the company’s strategy to remain profitable month-over-month. He said:
“We continue to dramatically alter our operating profile via our ongoing fleet upgrades and our geographic expansion.”
Bitfarm’s total revenue of $42 million was down 16% from the first quarter and was lower than analyst estimates. The miner said in its earnings report the decrease was due to smaller block rewards.
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