Bitcoin mining earnings reached their highest-ever level recently, coinciding with the ongoing surge in the value of the leading crypto asset.
According to the figures compiled by CryptoQuant, miners made a daily revenue of $78.6 million on March 7, surpassing the previous record set during the peak of the crypto boom in April 2021. Miners accrue income through both newly minted coins for verifying and recording transactions on the blockchain and through transaction fees paid by users.
Bitcoin Miner Revenue Taps New Record
The increase in miner revenues comes in the backdrop of a 70% surge in Bitcoin’s value so far this year, which pushed the crypto asset to surpass the $70,000 threshold for the first time.
The increase is part of a rally that started in mid-October 2023 but gained meaningful momentum after January 11, following the approval of spot Bitcoin exchange-traded funds (ETFs) for trading by the US Securities and Exchange Commission (SEC).
During the same period, the Bitcoin hash rate, a metric reflecting the computational power utilized in mining and processing transactions, has also been hovering near its recently established peak of 649 Eh/sec, according to BitInfoCharts.
Bitcoin network difficulty, on the other hand, dropped to 79.35T after registering 80T for the first time last month.
Recovery for Bitcoin Miners
Bitcoin miners have been one of the worst-hit players after the unraveling of a string of crypto scandals and bankruptcies in 2022.
The subsequent prolonged slump dragged two of the largest firms at the time, Core Scientific Inc. and Compute North, into bankruptcy, with other miners warning of a liquidity crunch. However, Core Scientific has managed to emerge from bankruptcy and relisted in January.
Following a close call during the crypto winter, Bitcoin miners are now focused on survival, investing billions in equipment and ramping up energy consumption at an unprecedented rate ahead of the halving event which poses a threat to their revenue streams.
But an upcoming event slated for April, which will halve miner rewards and reduce the coin’s supply growth, has further fueled speculation of price increases.
This situation represents a stark contrast to the depths of the crypto winter when some miners faced bankruptcy. For example, the Valkyrie Bitcoin Miners ETF, featuring companies like CleanSpark Inc. and Marathon Digital Holdings Inc., has more than doubled in value over the past year.
Firms are racing to position themselves for success, with Bloomberg reporting that since February 2023, 13 of the top mining companies have collectively placed orders exceeding $1 billion for specialized computers.
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