Bitcoin’s hashrate has reached a record high of 1 sextillion hashes per second, while miner revenues have plummeted by nearly 50% to $1.2 billion in March 2024, prompting increased Bitcoin sales by miners. The drop in revenue is attributed to the recent halving reducing block rewards and low transaction fees, resulting in diminished profit margins. Some firms sold more than their entire production in March, indicating they are adjusting strategies in response to the market’s challenges.
Bitcoin’s hashrate has recently reached unprecedented levels, peaking at 1 sextillion hashes per second on April 5, as reported by BitInfoCharts. This increase comes alongside a significant uptick in Bitcoin sales among miners, prompted by decreasing profit margins in the current market environment.
Despite the rise in hashrate, miner revenues have seen a substantial decline, dropping nearly 50% to approximately $1.2 billion in March 2024, according to Newhedge. This stark contrast highlights the economic challenges facing miners, as their revenue sources are compromised by diminishing block rewards and low transaction fees.
Miners typically derive income from two primary sources: block subsidies and transaction fees. Following the halving in April that reduced rewards to 3.125 BTC per block, the importance of transaction fees has escalated. However, low fee levels coupled with a high incidence of empty blocks have diminished profit margins significantly for miners.
Data from TheMinerMag indicates that public miners sold over 40% of their Bitcoin output in March, marking the highest sales level since October 2024. This trend suggests miners are reacting to reduced profitability amid ongoing market uncertainties, including hashprice fluctuations.
Certain companies have intensified their sales efforts, with HIVE, Bitfarms, and Ionic Digital selling more than 100% of their March production. In contrast, CleanSpark appears to be re-evaluating its strategies amidst these challenging conditions.
