Halving Hype: Bitcoin Mining Revenue Hits $2B, What’s Next?

• Bitcoin miners earned a record $2B, the highest in network’s history.
• Hashrate hits 600 EH/s, 80% year-over-year growth.

In March 2024, the Bitcoin mining industry witnessed remarkable growth as cryptocurrency prices surged to new ATHs, propelling mining profitability to new heights. According to recent data, bitcoin miners generated a staggering $2.01 billion in revenue from rewards and transfer fees, marking a significant milestone in the network’s history.

Of the total revenue earned, $85.81 million was attributed to transaction fees accumulated over the month. This surge in income represents the highest recorded earnings for miners since the network’s inception, surpassing the previous peak observed in May 2021, when earnings reached $1.74 billion.

Throughout March, the hashprice consistently exceeded $100 per PH/s daily, indicating strong demand for mining capacity. Bitcoin mining pools collectively mined 4,412 blocks during the month, with Foundry USA leading the pack by contributing 1,312 blocks, equivalent to approximately 29.74% of the network’s total.

Bitcoin Hashprice Index, Source: Hashprice Index

However, amidst the positive developments, the impending Bitcoin halving event scheduled for April 16, 2024, looms as a potential challenge for miners. The halving will reduce the block reward from 6.25 to 3.125 bitcoins, raising concerns about future profitability.

Analysts caution that unless offset by a substantial rally in Bitcoin’s price or a significant decrease in the network hashrate, the halving could lead to a decline in mining profitability in April. Nonetheless, the average daily block reward revenue per exahash for miners reached $100,400 in March, representing a 33% sequential increase and highlighting the impact of Bitcoin’s price appreciation on profitability.