FameEX Hot Topics | Bitcoin miners experience lowest revenues in 11 months as difficulty rises

August 2024 became the lowest revenue month for Bitcoin miners this year and the worst since September 2023. Miners recorded their lowest earnings in nearly a year as the number of coins mined dropped, highlighting ongoing challenges in the industry.

During August, Bitcoin miners generated $827.56 million in revenue, a significant decrease of over 10.5% from the $927.35 million earned in July. However, this figure still represents a 5% increase compared to August 2023, according to data from Bitbo. Despite this year-over-year improvement, the August revenue is a dramatic 57% drop from the March 2024 peak, when miners' revenue neared $1.93 billion.

This recent downturn marks the most challenging period for Bitcoin miners since September 2023, when they earned $727.79 million while Bitcoin hovered around $25,000. In contrast, Bitcoin's price has more than doubled since then, reaching $57,315 at the time of writing. However, the rise in Bitcoin's value has not been sufficient to counterbalance the growing difficulties faced by miners.

The number of mined Bitcoins also declined slightly, from around 14,725 BTC in July to 13,843 BTC in August. The revenue drop is largely due to declining transaction volumes and increasing mining difficulty, a trend that has accelerated following the April Bitcoin halving. The halving slashed block rewards by 50% to 3.125 BTC, further straining miners.

Additionally, median fees contributing to block rewards were just 2% in August. The daily confirmed transaction 30-day average peaked at nearly 631,648 on July 31 before falling to 594,871 by August 31. This increased difficulty and reduced profitability have driven some miners to divert their computing power to artificial intelligence projects, with some deals reportedly netting billions of dollars.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.