Bitcoin Miners Pocket Over $2 Billion in March
March proved to be the most profitable month for Bitcoin miners, with earnings surpassing $2 billion for securing the leading cryptocurrency network. An average of $65.23 million was pocketed per day by miners over the 30 days ending on March 31, according to data from Blockchain.com.
Miners Enjoy Massive Profits
- The latest figures shattered the 30-day averages of the preceding two months, which were $48.31 million as of February 29 and $43.29 million as of January 31.
- Miner revenues are highly reliant on Bitcoin’s market price, as the number of newly mined coins remains constant, irrespective of demand.
- Bitcoin traded consistently above $60,000 USD throughout March, reaching an all-time high of over $73,000 on March 13.
Breakdown of Miner Revenues
- The majority of miner rewards, $1.93 billion, came from Bitcoin’s “block subsidy”, a fixed reward of 6.25 BTC per Bitcoin block.
- Additional revenue of $85 million was generated through transaction fees, which can vary significantly month over month based on network demand.
- The upcoming halving event, where the block subsidy will be cut in half, poses a risk to miners who cannot efficiently run their mining equipment.
Surviving the Halving Event
- Analysts predict that most large, publicly traded miners should survive the halving, thanks to Bitcoin’s price appreciation this year.
- Preparations are already underway among large miners to navigate the halving, with some taking profits on their coins at elevated prices.
- Despite positive projections, many mining firms have experienced substantial declines since the start of the year, following the introduction of Bitcoin spot ETFs.
Exception to the Trend
- One exception to the downward trend is CleanSpark (CLSK), which has seen a 54% increase year to date after acquiring inexpensive mining machines during the Bitcoin bear market over a year ago.
By
By
By
By