Bitcoin Mining Revenue Hits Yearly Low Following Fourth Halving Event

In May, Bitcoin mining revenue significantly dropped as the effects of the fourth Bitcoin halving event took hold.

The halving mechanism, designed to limit the total issuance of Bitcoin to 21 million, saw mining rewards reduced from 6.25 BTC to 3.125 BTC on April 20.

While the launch of Bitcoin Runes and initial hype around the halving temporarily sustained miners’ earnings, May saw a notable decline.

According to data from Blockchain.com, on May 1, total revenue from block rewards and transaction fees hit a new low of $26.3 million, down from an average of $6 million per day before the halving.

This decline continued throughout May, signalling a new normal in Bitcoin mining revenue.

Although mining revenue reached an all-time high of over $107 million on April 20, miners worldwide have had to strategize to remain profitable in the post-halving era.

Miners have upgraded their equipment and operations to maintain profitability.

CryptoQuant CEO Ki Young Ju estimated that Bitcoin needs to stay above $80,000 to remain profitable post-halving.

Despite these efforts, Bitfarms, a major Bitcoin mining firm, recorded its lowest monthly earnings in over two years in April, prompting them to triple their hash rate with a $240 million investment in new mining equipment.