Bitcoin Miners See Lowest Revenue in Nearly a Year

August was the most challenging month for Bitcoin miners as they saw their lowest revenue in 11 months (September 2023). According to data from Bitbo, miners generated revenue of $827 million in August, representing a more than 10% decline from the $927 million revenue seen in July.

Specifically, in September 2023, miners generated $727.79 million in revenue. Meanwhile, the $827 million in revenue also marks a disappointing 57% decline from miners’ revenue peak of $1.93 billion recorded in March 2024.

Over 13.8K BTC Mined Last Month 

In August, the number of bitcoin mined reached 13,843 BTC, compared to a fairly larger 14,725 BTC mined during the month prior. The top miners for August include Foundry USA, which mined over 1,240 blocks (30% share), and Antpool, which mined 1,074 blocks (25.04% share).

According to Bitbo, the median fees miners collected only made up 2% of the total block reward in August. This suggests that transaction volume was likely lower than usual or users weren’t paying high fees for processing transactions quickly. The data also showed that while daily confirmed transactions by miners hit a year-to-date (YTD) peak in July at around 631,648, they dropped slightly to 594,871 by the end of August.

Furthermore, the difficulty of mining bitcoin hit an ATH of 89.47 trillion in August, compared to 86.87 trillion in July. This means it took more computing power to find a new block and earn a reward, thus making mining more expensive for miners.

The Halving Effect 

Meanwhile, the decrease in miners’ revenue can be attributed to decreased activity on the Bitcoin network and mining difficulty, which were exacerbated by the quadrennial halving event, which saw the block reward for miners be shed in half from 6.25 BTC to 3.125 BTC.

At the time of writing, BTC was trading at $58,485, marking a less than 1% decline on the day.