Concerns around miner difficulty, high network fees, and the profitability of miners on the Bitcoin network have become more relevant post-halving.
The block reward reduction from 6.25 to 3.125 BTC at the end of April has significantly impacted miners' profits.
Bitfarms reported a 42% drop in mining revenue during the month of May, the first full month since the last halving event. The Bitcoin mining company revealed in its month-end report that 156 BTC was earned in the month of May compared to 269 BTC in April.
The Bitcoin miner also explained that temperatures at his facility in Argentina were unusually low in May, recording some of the worst weather conditions in 44 years. These poor weather conditions caused the company's Río Cuarto facility to close for eight days, contributing to a decrease in total Bitcoin mined.
Since the start of 2024, Bitcoin miners in the United States have spent a total of $2.7 billion on electricity, despite increased computing difficulty and lower rewards.
According to analyst Paul Hoffman, “Since the start of 2024, Bitcoin mining in the US has consumed a massive 20,822.62 GWh of electrical energy.” The analyst added that the amount of energy used by Bitcoin miners since the start of 2024 could power 1.5% of American homes for an entire year.
In April, it took an average of $52,000 to mine a single Bitcoin. Following the halving event, the cost to mine a single Bitcoin has more than doubled to an average of $110,000.
