Summary
- Bitcoin miners’ daily revenue hits a new yearly low of $2.5 million.
- New mining strategies can keep companies profitable.
According to the latest official reports, the revenue earned by Bitcoin miners mainly via block rewards and transaction fees declined over 2 weeks. The revenue reached a new yearly low on August 11 of $2.54 million.
The number was reportedly seen last in October 2023. The daily revenue dropped under $3 million for the first time in May 2024, data from Blockchain.com reveals.
The BTC miner revenue drop was something that’s been already anticipated following the April 2024 halving event that slashed revenue from 6.25 BTC to 3.125 BTC.
The Need for Innovation in Bitcoin Mining
As Bitcoin miners’ revenue drops after each halving, they continue to address the need for innovation in mining strategies.
However, it’s worth mentioning that rising Bitcoin prices and the significant hype around newly-build Bitcoin protocols such as Runes, along with innovative use of AI can boost miners’ revenue.
For instance, Bitcoin mining farms such as Bitfarms have upgraded their mining equipment in order to remain profitable.
Their stock surged by 22% following the release of Q2 earnings which turned out to be better-than-expected.
It’s also worth noting that on August 8, Bitfarms CEO Ben Gagnon revealed the firm’s strategy to remain profitable amidst the miners’ revenue decline.
He said that they continue to dramatically alter their operating profile via the ongoing fleet upgrades and the geographic expansion.
So, the upgrading of hardware tech used in mining is definitely helping mining companies, along with the shift to AI.
20% of Bitcoin Miners’ Power Capacity to Shift to AI by 2027
As we reported not too long ago, according to a recent Bernstein report, 20% of the Bitcoin miners’ power capacity will shift to AI by 2027.
To be more specific, Bernstein’s report highlights Bitcoin miners’ potential to become strong partners for companies to build AI data centers.
Analysts led by Gautam Chhugani believe that Bitcoin data centers are perfect for retrofit due to the following factors:
- High-power density racks
- Cooling infrastructure
- General data center operating capabilities
The same report revealed that five of the largest US Bitcoin miners are expected to continue consolidating scale and grow to about 25% of the Bitcoin global hash rate with the medium-term option to pivot to AI.
Also, the use of renewable energy sources for Bitcoin mining with the best example being El Salvador which uses volcanic energy is another viable option for miners.
