After posting record-breaking earnings on Bitcoin (BTC) halving day, miners now face another reality, with a high network hash rate and lower revenues pushing down profits.

The average revenue a miner earns per performed hash, known as the hash price, has reached its lowest level since October 2023. According to crypto analytics firm CryptoQuant, the hash price for miners dropped from nearly $0.12 in early April to $0.07 post-halving, following a $0.19 peak on halving day.

Bitcoin’s halving event slashed miners’ block reward from 6.25 BTC to 3.125 BTC, while the sector’s operational costs remain steady. CryptoQuant’s CEO, Ki Young Ju, estimated that the cost of mining with Antminer S19 XPs would increase from $40,000 to $80,000 following the halving.

Bitcoin hash price. Source: CryptoQuant

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Despite the reduction in rewards, the total network hash rate has remained stable since the halving event, suggesting that BTC mining is still profitable at Bitcoin’s current prices. Cointelegraph Markets Pro shows Bitcoin holding above the $64,000 mark since April 19.

“Although it is still too early to see any long-term effects of the halving on the network hashrate, miners seem to be running operations at the same rate as before the halving,” CryptoQuant noted in a report, as the total network hash rate held flat at 617 EH/s post-halving.

On the day of the halving, transaction fees reached record levels relative to the total revenue generated by miners. Transaction fees represented 75% of total miner revenue on the halving day, which amounted to roughly $80 million. Since then, it has dropped to about 35% of total miner revenue.

While the immediate effects show stability, the long-term impacts on the hash rate and overall miner activity could still change. In the past, post-halving periods have seen miners exit the market due to high operational costs. Factors like Bitcoin price movements and changes in electricity costs are likely to play crucial roles in the mining business.

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