Bitcoin mining revenue reached an all-time high of $2 billion in March
Bitcoin mining revenue surged to a record $2 billion in March, driven by high transaction fees and block rewards.
In March, Bitcoin mining companies achieved their highest monthly revenue ever, exceeding $2 billion in block rewards and transaction fees. This surpasses the previous record of $1.74 billion set in May 2021.
Out of the total earnings of $2 billion last month, approximately $85 million came from transaction fees, while $1.93 billion was derived from the block subsidy. Miners receive compensation for both validating transactions and creating new bitcoins.
The block subsidy, which is the reward for each block mined, is currently set at 6.25 bitcoins. However, it will be reduced to 3.125 bitcoins following the upcoming halving event in April. This halving will halve miner revenue from new bitcoin creation unless there is a significant increase in price.
The surge in miner revenue in March was driven by increased network activity and rising bitcoin prices. The impending halving prompted miners to maximize their earnings before the reduction in profits.
In March, the leading US mining pool, Foundry, accounted for 29.4% of all blocks mined, while the Chinese pool AntPool came in second with 22.4% of blocks. Together, these two pools captured over half of the monthly Bitcoin supply.
While miners reaped substantial profits last month, exchange-traded funds (ETFs) purchasing bitcoins on the open market accumulated even more. ETFs acquired approximately 66,000 bitcoins in March, whereas miners only produced around 25,500.
This growing supply-demand gap and the scarcity resulting from the halving could intensify competition to secure Bitcoin. The resulting increases in mining difficulty could lead to the exclusion of less efficient miners, prompting industry consolidation.
As the halving event approaches and halves rewards in a matter of weeks, miners face a more challenging environment unless Bitcoin's price compensates for the reduction in issuance. However, if history repeats itself, a significant bitcoin bull run could be imminent, mitigating the impact of reduced block subsidies on revenue.
