Bitcoin miner revenue drops to about $30 million as fees stay under $250,000

The Block said Bitcoin has traded near $62,500, remaining below JPMorgan’s estimated $78,000 production cost for five months as mining difficulty fell 10% in the second week of June.

BTC

Summary

Bitcoin miners’ 7-day average daily revenue has fallen to about $30 million, down from more than $50 million last summer, highlighting tighter economics for the sector. Transaction fees have contributed less than $250,000 a day, suggesting most miner income is coming from block rewards rather than network activity. The Block said Bitcoin near $62,500 has stayed below JPMorgan’s estimated $78,000 production cost for five months, a gap that can pressure less efficient operators. About 20% of miners are now unprofitable, and listed miners sold more than 32,000 BTC in the first quarter to cover operating costs. Mining difficulty, which measures how hard it is to validate blocks, fell 10% in the second week of June, marking the second similar reduction this year.

Terms & Concepts
  • mining difficulty: Measure of how hard it is for miners to validate blocks on the Bitcoin network
  • transaction fees: Payments attached to transfers that help compensate miners for processing activity
  • production cost: Estimated expense required to mine one bitcoin