Bitcoin miners saw substantial shifts in their revenue during 2024, a pivotal year marked by the network’s fourth halving event. As bitcoin’s block reward dropped from 6.25 BTC to 3.125 BTC at block 840,000 in mid-April, the dynamics of mining profitability shifted dramatically, influencing revenue trends throughout the year.
From Peaks to Valleys: The Dramatic Revenue Shifts for Bitcoin Miners in 2024
The year began on a strong note for bitcoin (BTC) miners. Metrics collected from theblock.co’s mining data shows January’s total mining revenue reached $1.35 billion, with block subsidies contributing $1.21 billion. February saw a modest rise to $1.39 billion, and March peaked pre-halving at $2.01 billion in total revenue, $1.93 billion of which came from block rewards. These strong earnings showcased the significance of block subsidies and hashprice prior to the halving event at block height 840,000.
Following April’s halving, miners experienced a sharp revenue decline. April’s total revenue was down to $1.79 billion, as subsidies fell to $1.5 billion, reflecting the reduced block reward. By May, revenue dropped below $1 billion for the first time in 2024, totaling $964.24 million, with rewards contributing $899.39 million. This downward trend continued through August, which marked the second-lowest revenue month this year at $851.36 million.
September brought further challenges, with bitcoin miners’ total revenue slipping to $815.7 million, the lowest point for block subsidies at $801.84 million. However, miners saw a gradual recovery in the fourth quarter. October’s revenue climbed to $1.02 billion, and November also surpassed the $1 billion mark at $1.21 billion, spurred by bitcoin’s price resurgence following the U.S. election.
Bitcoin’s total hashrate in 2024.
December capped the year with $1.41 billion in revenue, driven by bitcoin’s price exceeding $108,000 in mid-December. December’s estimate could be a touch higher too as Dec. 31, 2024, is not quite finished. While revenues improved significantly in the final quarter, they remained below pre-halving levels. The subsidy portion of December’s revenue, $1.37 billion, highlighted the enduring importance of current block rewards despite the lower rate.
The timeline shows the halving event showcased the impact of reduced block rewards on miner earnings while highlighting the resilience of the sector. While revenue shifted immensely this year, miners still managed to break records in terms of computational power. The hashrate managed to climb over 805 exahash per second (EH/s) this month according to the seven-day simple moving average (SMA).
Moreover, Bitcoin’s network difficulty climbed sky-high this year as well rising to a massive 109.78 trillion after the difficulty change last night. As bitcoin’s price rallied late in the year, miners demonstrated adaptability in navigating new economic realities. Whether future years bring similar volatility will depend largely on market trends and technological advancements in the mining ecosystem.
