Bitcoin Mining Revenues Plummet 72% After April’s Halving Event

One of the key events that regularly shake up the Bitcoin ecosystem is the halving event, and the most recent one in April 2024 certainly made its mark. According to BanklessTimes.com, Bitcoin mining revenues have dropped by 74% since then.

Elizabeth Kerr from BanklessTimes commented:

Bitcoin halving has affected the mining community. Despite being a key milestone, it presented a moment of reflection to miners facing a drop in revenue. As a result, Bitcoin miners must show resilience to adapt to the new changes.

BanklessTimes crypto expert, Elizabeth Kerr

Earnings from Bitcoin mining

Daily revenue from Bitcoin mining dropped to under $3 million from the previous daily average of roughly $6 million in the first four months of 2024. Earnings from Bitcoin mining dropped significantly in May as the effects of the fourth Bitcoin halving event set in.

Mining revenue peaked on April 20, marking an all-time high daily earnings of over $107M for the first time in Bitcoin history. On May 14, the total revenue earned from block rewards and transaction fees fell to $27.74M.

CryptoQuant CEO Ki Young Ju calculated that Bitcoin requires to hold above $80,000 to keep mining profitable post-halving under current conditions. However, most miners took proactive measures to upgrade their mining equipment to reduce long-term operational costs while being competitive.

Understanding Bitcoin Mining and Halving

Bitcoin remains the preferred digital asset in the global market. However, it isn’t just bought like traditional currency; it is mined. Bitcoin mining is a complex process. Miners use supercomputers to solve complex mathematics while validating and recording transactions on the blockchain, the decentralized ledger that powers Bitcoin.

Bitcoin supply is controlled to ensure it can never exceed 21 million Bitcoins over the decades. The strategy Bitcoin uses is “halving,” an occurrence that happens after every four years. The last halving occurred on April 20, when mining rewards were slashed to 3.125 BTC from 6.25 BTC. However, miners didn’t feel the pinch at the moment due to the initial buzz about Bitcoin Runes. May 1 came with a harsh reality: only $26.3 million came from block rewards and transaction fees, a record low.