Bitcoin Miners Earn Lower as Mining Power Rises
Bitcoin miners face low earnings, even as mining power hits a record high. Some companies are selling stocks to manage the drop in revenue.
Bitcoin mining revenue, known as “hash price”, has dropped to its lowest since FTX's collapse in 2022. Meanwhile, the hash rate, which measures mining power, hit record highs.
Last week, the power behind the Bitcoin network reached its highest at 414 exahashes per second (EH/s) on Aug. 18.
This rate has grown by 54% since the start of 2023 and 80% over a year, as shown by Blockchain.com.
But even with this strong network power, Bitcoin miners are earning less. Their revenue is as low as when Bitcoin's price was around $16,500 in November 2022.
A website, HashPriceIndex, says miners now earn about $0.060 for every terahash each day. This is half of what they earned in May when there was a high demand for Bitcoin.
Dylan LeClair, a market expert, believes the Bitcoin price needs to rise. He thinks that will help miners make more money, especially with the increasing hash rate.
To deal with these challenges, some Bitcoin miners sold company stocks. A report on Aug. 24 mentioned that 12 big mining companies made about $440 millionby selling stocks.
Mark Jeftovic, a Bitcoin expert, warns that some mining companies are selling too many shares. If they continue, it might not be good for their shareholders.
