Miners Earn Record Revenues

March saw miners collect a record $2 billion in revenues, but their earnings will be slashed later this month.

How many miners will be forced offline after the Halving?

Despite the recent drawdown in bitcoin's price, miners had a bumper month in March, earning over $2 billion. This is a record for the mining industry, and one last huge harvest of profits before block rewards are cut in half in two weeks time.

Bitcoin spent a significant percentage of March trading around, or above, its previous all-time high of $69,000. This has allowed miners to bank some reserves, in BTC and fiat terms, in preparation for the Halving.

At that point, currently projected to take place on April 20, only 450 new BTC will be mined per day, rather than the current 900 BTC. There are concerns that many miners, who today exist on the borderline of profitability, will no longer be viable, and will go offline.

Big Miners Staring Down Post-Halvening Bankruptcy
Argo Blockchain and several other large miners are likely to struggle to make ends meet after the halving.

Hashrate Drawdowns

This is a common feature of previous Halvings, which have seen notable but short-lived drawdowns in network hashrate. Halvings are hard-coded into the Bitcoin protocol and occur every 210,000 blocks. However, this transparency and forewarning is not enough to protect all miners from the effects of having their revenues slashed. Some are simply not able to compete successfully, given their electricity costs and existing hardware.

Overall, Halvings are an opportunity for the Bitcoin network to purge inefficient miners. In the past, hashrate has always recovered within a matter of weeks, although the event generally entails some short-term disruption as miners go offline and blocks can take longer than usual to be confirmed, until a Difficulty adjustment compensates for the change.

March's record revenues will provide the best possible chance for those miners who are currently struggling to maintain their edge against the competition.

Great! You’ve successfully signed up.

Welcome back! You've successfully signed in.

You've successfully subscribed to REX Wire.

Success! Check your email for magic link to sign-in.

Success! Your billing info has been updated.

Your billing was not updated.