📉 BITCOIN HALVING CUTS PRODUCTION, SINKS REVENUES FOR TOP MINERS 📉
The Bitcoin halving event on April 20, 2024, has significantly impacted Bitcoin mining production and revenues. Major mining firms have reported substantial declines in output and earnings, attributing these changes to the reduced block rewards.
📊 Stronghold Digital Mining’s Decline:
Stronghold Digital Mining experienced a 47.1% drop in monthly Bitcoin mining output in May, producing only 82 BTC compared to 155 BTC in April. This decline resulted in a 46% revenue decrease, with May’s earnings at $5.2 million. The firm cited the halving and reduced block rewards as primary reasons for the decline, along with a drop in Bitcoin’s price and transaction fees.
🔍 Broader Industry Impact:
Other mining companies also reported declines:
Cipher Mining: Mined 166 BTC in May, down 43.9% from 296 BTC in April. Despite the drop, the company maintained positive cash flows and expanded its operations.
Marathon Digital: Produced 616 BTC in May, a 27.5% decrease from 850 BTC in April. Marathon mitigated the impact by increasing the number of mining blocks won from 129 in April to 170 in May. The firm held 17,857 BTC at the end of May and sold 390 BTC during the month.
📉 Hash Price and Network Hash Rate:
Stronghold reported an average hash price of $0.052 per TH/s in May, down from $0.095 in April, due to the halving. The network hash rate of 1.2% partially offset the declining trend.
💡 Industry Adjustments:
Several other firms, including CleanSpark, Riot Platforms, and Bitfarms, also reported similar declines in BTC output. The Bitcoin halving event reduced block rewards from 6.250 to 3.125, impacting miner difficulty and overall production capacity.
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