Bitcoin Miners Revenue Reaches Lowest Point This Year: Will They Surrender?
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Miners revenues have hit their lowest point since early 2023, but one expert notes they don’t appear eager to sell.
Bitcoin miners are starting to experience the negative impacts of the recent halving, as industry revenues have hit their lowest level since early 2023. The reduced profit margins prompt concerns about which companies can survive until Bitcoin’s next halving and how the market price of Bitcoin could be affected.
Sharp Drop in Mining Revenue
According to data from the on-chain analytics platform CryptoQuant, Bitcoin’s “Puell Multiple” experienced a steep drop immediately following the halving that took place between April 19 and April 20.The Puell Multiple is a ratio that measures the value of daily BTC issuance in USD against the 365-day moving average of that same metric.
Since the amount of new BTC given to miners has decreased from 6.25 BTC per block to 3.125 BTC per block, the Puell Multiple has declined.Glassnode Academy explains that a high Puell Multiple suggests high miner profitability, motivating miners to sell their coins.
In contrast, a low multiple indicates that less efficient miners are shutting down their operations, allowing remaining miners to profit more and sell fewer coins to sustain their businesses.
As of April 28, the Puell Multiple was at just 0.73, far below its 365-day simple-moving-average of 1.43. This resulted in a drop in miners’ daily USD revenue.
CryptoQuant’s mining dashboard reveals that miner BTC flows to OTC desks and exchanges are moderate, indicating that miners are reluctant to sell their BTC.
The Effect of Runes
Although miner revenues have become more subdued, the day of the halving was exceptionally profitable for miners, bringing in $106 million in revenue compared to around $68 million on previous days.
This temporary surge in profits was primarily due to the simultaneous launch of Runes, a new protocol standard for minting tokens on Bitcoin, created by Ordinals founder Casey Rordamor.
In a rush to mint new tokens, Runes users drove Bitcoin network fees up to over $100 per transaction, enabling miners to earn several blocks with over 30 BTC in fee revenue. Since then, fees have returned to normal levels, and miner revenue has decreased to $28.5 million per day.
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