Bitcoin miners experienced a consistent drop in revenue over the past two weeks, reaching a new yearly low on August 11. Daily earnings fell to $2.54 million, a figure last seen in October 2023.
The decrease in revenue wasn’t unexpected. The Bitcoin community had anticipated this decline following the Bitcoin halving event on April 20. This event reduced mining rewards from 6.25 BTC to 3.125 BTC. Since May, daily revenue from mining has been under $3 million, a stark contrast to the roughly $6 million earned per day in the first four months of 2024.
Challenges and New Strategies for Bitcoin Miners
Despite the drop in revenue, some miners managed to stay afloat due to rising Bitcoin prices and the excitement around other protocols within the Bitcoin ecosystem. Companies like Bitfarms prepared for this by upgrading their mining equipment to ensure profitability during uncertain times.
After the sharp decline in May, daily revenue briefly increased but then entered a two-week decline, reaching a new yearly low. Several factors contributed to this drop, including the ongoing bear market, lower Bitcoin prices, increased network difficulty, and liquidations.
Bitfarms Sees Stock Surge Despite Revenue Challenges
Amid these challenges, Canadian Bitcoin miner Bitfarms saw its stock surge nearly 22% after releasing better-than-expected second-quarter earnings on August 8. Bitfarms CEO Ben Gagnon emphasized the company’s strategy to stay profitable, which includes upgrading their fleet and expanding geographically.
Despite a total revenue of $42 million, which was down 16% from the first quarter and lower than analyst expectations, Bitfarms attributed the decrease to smaller block rewards. The company’s strategic moves aim to offset these challenges and maintain profitability.
