Bitcoin Mining Revenue Hits New Low

Bitcoin mining revenue hit a new low in August 2024, marking the industry’s worst performance in nearly a year. According to data from on-chain analytics platform Bitbo, miners of the world’s largest cryptocurrency only made $827 million in the month. That’s down more than 10% from the $927.35 million recorded in July.

This sharp decline in revenue is even more significant when compared to the industry’s peak performance in March 2024, when Bitcoin mining generated over $1.9 billion. This peak period coincided with the digital asset’s all-time high, which reached over $73,500 on March 13.

In addition to the drop in total revenue, transaction fees on the Bitcoin network have also seen a significant reduction. Data from The Block indicates that network participants received approximately $20.76 million in fees last month, a decrease of $4.14 million compared to July.

This decline becomes even more pronounced when considering that in April, transaction fees exceeded $281 million, in contrast to mining revenue of $1.5 billion.

Bitcoin Mining

The amount of Bitcoin mined also fell slightly, falling from approximately 14,725 in July to 13,843 in August. This decline made August the worst month in terms of revenue for miners since September 2023, when the industry generated around $727 million. However, since then, Bitcoin’s value has more than doubled, trading at $58,000 at press time.

Another factor contributing to miners’ negative performance was the continued increase in mining difficulty, which reached an all-time high of 89.47 trillion in August, up from 86.87 trillion in July.

Despite the unfavorable scenario for miners, the number of Bitcoin “whales,” that is, investors who own at least 100 BTC, has increased significantly.

According to crypto analytics platform Santiment, the number of wallets holding more than 100 BTC grew by 283 in the past month, reaching 16,120, the highest level in almost a year and a half.

This Bitcoin accumulation trend comes amid recent struggles for the cryptocurrency, which has seen a 1.5% drop in the past 24 hours and lost nearly 10% of its value in the past seven days, according to data from CoinGecko. During that period, the asset’s price has ranged between $57,383 and $64,066, struggling to hold the $60,000 support level.

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