Bitcoin Miners Revolt: August Revenue Hits New Low

MetaversePlanet September 3, 2024Last Updated: September 3, 2024

0 1 minute read

Bitcoin miners recorded their lowest revenue month since September 2023 as the number of BTC mined fell in August.

According to Bitbo data, miners’ revenue reached $827.56 million in August, down more than 10.5 percent from July’s $927.35 million, but up 5 percent from August 2023.

The August figure represents a 57% decline from its peak of $1.93 billion in March 2024, the same month when Bitcoin reached an all-time high of over $73,500 on March 13. Prior to this, the worst revenue month for Bitcoin miners was September 2023, when they earned $727.79 million, with Bitcoin hovering around $25,000 throughout the month.

Bitcoin mining data isn’t going well at all

The number of Bitcoins mined dropped from around 14,725 BTC in July to 13,843 BTC in August.

This decline in revenue occurred as miners’ transaction volumes decreased and the difficulty of cryptocurrency mining increased. The challenge intensified following the Bitcoin halving in April, which reduced rewards by 50% to 3.125 BTC.

According to data from Bitbo and Blockchain.com, average fees, which make up the percentage of the block reward, were 2% in August. Additionally, the 30-day average of daily confirmed transactions declined to 594,871 on August 31, after reaching a year-to-date high of approximately 631,648 on July 31.

The mining difficulty level also continued to rise, reaching an all-time high of 89.47 trillion in August, up from 86.87 trillion in July.

The increasing difficulty and decreasing profitability of Bitcoin mining have led some miners to shift their processing power to artificial intelligence, with some deals reportedly earning miners billions of dollars.