The earnings generated from Bitcoin mining experienced a significant decline in May as a result of the fourth Bitcoin halving event. This event was implemented to gradually reduce the issuance of Bitcoin, with a total cap of 21 million BTC spread out over many years. The halving that occurred on April 20 resulted in a reduction of mining rewards from 6.25 BTC to 3.125 BTC.
Initially, there was a lot of excitement surrounding the halving and the introduction of Bitcoin Runes, which temporarily sustained miners’ daily earnings. However, in May, there was a sharp drop in revenue. On May 1, the total revenue earned from block rewards and transaction fees hit a new low of $26.3 million. Prior to the halving, miners were earning an average of $6 million per day, according to data from Blockchain.com.
Throughout May, the revenue patterns remained consistent, indicating a new normal in Bitcoin mining earnings. Interestingly, the highest daily earnings in Bitcoin history were recorded on April 20, reaching over $107 million.
In anticipation of this significant decline, miners worldwide adjusted their operations to ensure profitability in the next phase of the Bitcoin economy. If not, miners would have to rely solely on the high market value of Bitcoin to sustain their operations. To learn more about being a profitable Bitcoin miner from home, refer to Cointelegraph’s guide.
According to Ki Young Ju, the CEO of CryptoQuant, Bitcoin would need to maintain a value above $80,000 to remain profitable for miners after the halving, given the current conditions. However, most miners have taken proactive measures to upgrade their mining equipment in order to reduce long-term operational costs and remain competitive.
For instance, Bitfarms, a Bitcoin mining company, has allocated $240 million to triple its hash rate. In a previous interview with Cointelegraph, Jeffrey Lucas, the CFO of Bitfarms, explained the company’s efforts to acquire 88,000 highly efficient Bitcoin miners. Despite these efforts, Bitfarms experienced its lowest monthly earnings in over two years, mining only 269 Bitcoin in April.
In other news, Bitcoin recently surpassed one billion transactions, showcasing its growing popularity and adoption.