Bitcoin miners rake in unprecedented $2 billion prior to halving
Bitcoin miners achieved a remarkable milestone in March, surpassing $2 billion in earnings and setting a new record. This unprecedented level of income surpassed the previous high of $1.7 billion, which was reached in May 2021, according to data from The Block analytics.
The revenue earned by miners is a combination of rewards for successfully mining blocks and transaction fees on the Bitcoin network. Notably, transaction fees accounted for $85.8 million of the total revenue in March, representing a record monthly figure.
The mining pool Foundry USA emerged as the leader during this period, mining a staggering 1,312 blocks, which accounted for 29.74% of the total blocks on the network. Antpool secured the second position with 989 blocks, followed by Viabtc, F2pool, and Binance Pool.
Looking ahead, there are significant changes looming for miners. In April, the block reward is set to decrease from 6.25 BTC to 3.125 BTC. As a result, the daily volume of commissions is expected to revert to around $2 million. However, there have been no noticeable fluctuations in this indicator during the initial days of the month.
Experts at Galaxy Digital have estimated that the upcoming halving event will render approximately 15% to 20% of the total computing power of the Bitcoin network unprofitable. Consequently, miners are expected to shut down certain installations in response to the reduced reward, opting to keep only the most efficient equipment operational.
Furthermore, experts anticipate a post-halving migration of outdated Bitcoin mining equipment from the United States to regions with lower energy tariffs, such as Africa. This shift is driven by the desire to minimize costs and maintain profitability.
Buyers in the mining equipment market are also adopting a wait-and-see approach, deferring their purchases until after the halving event in order to take advantage of lower prices. For instance, the cost of used S19s was approximately $7,000 in March 2022, but has now dropped significantly to $427.
As the landscape of Bitcoin mining continues to evolve, it will be fascinating to observe how miners adapt to the changing dynamics and navigate the challenges and opportunities that lie ahead. Stay informed by following us on Google News.
