Bitcoin Mining Revenue Tanks in May
Crypto News

Bitcoin Mining Revenue Tanks in May

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3 months ago

Bitcoin miners had their worst month in a long time as mining revenue slid by more than 20%.

Bitcoin Mining Revenue Tanks in May
According to research by The Block, Bitcoin mining revenues fell by 21.6% in March. Miners received $906 million in revenue, 47% less than they did in October 2021 when the market was peaking. It is the first month since August 2021 that mining revenue did not clear the $1 billion mark.

The Block notes that $890 million in revenue came from the block reward subsidy and only $16 million from transaction fees. Daily revenue thus continues its decline from the peak set in late 2021.

Bitcoin mining profitability is at its lowest level since October 2020, according to Bitinfocharts. Mining profitability has more than halved since the start of the year and is down almost 75% from 2021 peaks. We can infer that competition in the mining industry is up, something that is also reflected in stock reports from mining companies.
In The Block's mining stock report, companies like Core Scientific (-14.16%) and Hut 8 (-11.31%) saw double-digit losses, following their May reports. Bitfarms was down by -6.47% on the Nasdaq, although Ben Gagnon, its chief mining officer, remained upbeat about future prospects:

"Bitfarms’ mining operations remain profitable, even with the drop in Bitcoin prices."

Profitable as it may be, the margins, for now, are getting ever slimmer.

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