Bitcoin Miner Revenue Achieves Second-Highest Day in History

On March 7th, Bitcoin miner revenue marked its second-highest day in history, occurring shortly after the Bitcoin price reached a new record peak surpassing $69,200.

Per CryptoQuant, Daily Bitcoin miner revenue reached as much as $76 million yesterday. 

On the very day that Bitcoin miner Hut 8 declared the abrupt closure of its mining site in Drumheller, Alberta, Canada, citing power interruptions and escalating energy expenses, there was a notable surge in revenue. 

The facility, which had an average annual output of 48 Bitcoin, constituting about 1.4% of the company’s holdings and 11% of its hash rate, ceased operations with immediate effect, as revealed in a statement on March 6

The recorded revenue of $75.9 million on that day stands as the second-highest, following closely behind the record set on April 14, 2021, when daily revenue reached an unprecedented $77.3 million during a period when Bitcoin was trading above the $60,000 threshold.

It is evident that the primary catalyst for the surge in total miner revenue was the BTC rally to an all-time high.

However, the impact of this rally varies between the two components comprising the overall miner revenue. In the case of block rewards, any escalation in the price directly influences it in a linear manner, as the USD value of these rewards rises in tandem.

Considering the recent substantial increase in the value of Bitcoin, it is unsurprising that block rewards have experienced a corresponding upswing. Conversely, for transaction fees, the relationship is more intricate.

The total fees are contingent upon the current level of blockchain traffic. During market rallies, there is typically an increase in traffic, driven by heightened interest in the cryptocurrency, thereby elevating network fees.

This should continue as more retail investment flows to Bitcoin in coming months, regardless if the reward is halved.