FameEX Hot Topics | Bitcoin miners face lowest revenues in 11 months as difficulty increases

August 2024 marked the lowest revenue month for Bitcoin miners so far this year and the worst since September 2023. Bitcoin miners recorded their lowest earnings since that time, as the number of mined coins dropped in August. This decline reflects ongoing challenges in the mining industry.

In August, Bitcoin miners generated $827.56 million in revenue, a decrease of over 10.5% from July’s $927.35 million. However, this figure is still 5% higher than the revenue recorded in August 2023, according to Bitbo data. Despite this slight year-over-year improvement, the August figure represents a significant 57% drop from the peak in March 2024, when miner revenue approached $1.93 billion.

This recent downturn is the worst for Bitcoin miners since they earned $727.79 million in September 2023, when Bitcoin was trading around $25,000. In contrast, Bitcoin's price has more than doubled since then, reaching $57,315 at the time of writing. The increase in Bitcoin's value, however, has not been enough to offset the challenges facing miners.

The number of mined Bitcoin also slightly declined, from approximately 14,725 BTC in July to 13,843 BTC in August. This drop in revenue is attributed to falling transaction volumes and increased mining difficulty, a trend that has accelerated since the April Bitcoin halving. The halving reduced block rewards by 50% to 3.125 BTC, putting additional pressure on miners.

Additionally, the median fees that contributed to block rewards were just 2% in August. The daily confirmed transaction 30-day average hit a peak of nearly 631,648 on July 31, before dropping to 594,871 by August 31. This increased difficulty and reduced profitability have led some miners to shift their computing power to artificial intelligence, with some deals reportedly earning miners 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.