Revenues from Bitcoin BTC/USD mining plunged to an 11-month low as the industry continued to grapple with the fallout of April halving and the apex cryptocurrency's downward price action.
What happened: According to data from BitBo, miner earnings plummeted to a little over $827 million in August, marking a decline of 10% from July.
August's revenue was also the lowest since September 2023 and represented a drawdown of 57% since the peak in March.
Furthermore, the total number of mined BTCs fell from 14,725 in July to 13,843 in August, a 6% decline.
Why It Matters: The revenue squeeze was likely due to Bitcoin's sharp 8.6% drop in August. Since miners earn by cashing out their Bitcoin holdings, the price fall negatively affected their revenue streams.
Additionally, hash price, which quantifies how much a miner can expect to earn per unit of hash rate, fell in August, according to Hashrate Index, making it less lucrative for miners to engage in the business.
The industry has had a tough time since the quadrennial halving earlier this year that slashed block rewards–the major component of miner's revenue–by half.
Price Action: At the time of writing, Bitcoin was trading at $59,222.40, up 2.74% in the last 24 hours, according to data from Benzinga Pro.
Stocks of mining-related companies also suffered in August. The biggest in market cap, Marathon Digital Holdings Inc. MARA, recorded a 13.6% drop.
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