Bitcoin miners' revenue falls to 12-month low in August

The income of Bitcoin miners reached its lowest point in 12 months in August 2024, mainly due to the halving event in April. According to data from the Bitcoin monitoring platform Bitbo, mining income in August was about $827 million, the lowest since September 2023 and far below the peak of nearly $2 billion in March 2024.

The halving event, which occurs every four years, reduces the Bitcoin reward per block by half. The April halving reduced the reward from 6.25 BTC to 3.125 BTC. Since the halving, the number of Bitcoins mined per month has steadily declined from a high of 347,000 BTC in May 2011 to less than 14,000 BTC in August.

JPMorgan's report pointed out that the fourth Bitcoin halving event led to a decrease in daily mining output and revenue opportunities, affecting miners' profitability and earning potential. The five listed Bitcoin mining companies that JPMorgan is concerned about saw a 28% decrease in mining volume in the second quarter.

To cope with the income decline, Bitcoin miners are adjusting their business models. Some companies, such as Core Scientific, Hive Digital Technologies, and Hut 8, are investing in artificial intelligence applications, while other companies such as Bitdeer Technologies Group are improving mining efficiency. Bitdeer reported that its gross profit in the second quarter of 2024 increased by about 50% year-on-year.