Bitcoin mining companies generated their highest-ever month-to-month income in March, raking in over $2 billion in block rewards and transaction charges.
This shatters the earlier document of $1.74 billion set again in Could 2021.
JUST IN: #Bitcoin Miners hit a document $2 billion in month-to-month income, highest ever.
Halving coming in scorching in 2 weeks 🙌
— Bitcoin Journal (@BitcoinMagazine) April 2, 2024
Of the $2 billion earned final month, round $85 million got here from transaction charges, whereas $1.93 billion was from the block subsidy. (Miners obtain compensation each for validating transactions and minting new bitcoins.)
The block subsidy, paid out for every block mined, is at present 6.25 bitcoins. However it’ll drop to three.125 bitcoins after the upcoming halving occasion in April. This can minimize miner income from new bitcoin creation in half except there’s a important worth rise.
Greater community exercise and rising bitcoin costs each contributed to miners’ bumper revenues in March. The upcoming halving created urgency for miners to maximise earnings earlier than earnings are squeezed.
The main US mining pool, Foundry, captured 29.4% of all blocks mined in March. Chinese language pool AntPool took second place with 22.4% of blocks. The 2 captured over half the month-to-month Bitcoin provide.
Whereas miners loved their revenue bonanza final month, exchange-traded funds buying bitcoins on the open market amassed much more. ETFs purchased roughly 66,000 bitcoins in March, whereas miners solely produced round 25,500.
This widening supply-demand imbalance and halving-related shortage might spur higher competitors to safe Bitcoin. The ensuing problem will increase could begin pricing out much less environment friendly miners, spurring trade consolidation.
With the halving slicing rewards in half in a matter of weeks, miners face an more and more harsh setting if Bitcoin’s worth fails to compensate for the drop in issuance. But when historical past repeats, a powerful bitcoin bull run might nonetheless be on the horizon, softening the income blow of lowered block subsidies.
