March of 2024 witnessed a remarkable milestone as Bitcoin mining ventures raked in a staggering $2 billion in monthly revenue. This impressive achievement surpassed the previous record of $1.74 billion set back in May 2021, according to data scrutinized by NewsNow based on insights from Bitcoin Magazine.
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The revenue breakdown revealed that about $85 million of the total earnings originated from transaction fees, while the remaining $1.93 billion was derived from the block subsidy. This subsidy compensates miners for validating transactions and creating new bitcoins, with the current rate set at 6.25 bitcoins per mined block, ready to be halved to 3.125 bitcoins post the forthcoming halving event slated for April.
The revenue surge stemmed from various factors including escalated network activity and the soaring prices of Bitcoin further amplifying miners’ profits. Leading mining pools such as Foundry, which dominated 29.4% of all mined blocks in March, and AntPool, a significant Chinese pool with a 22.4% share, contributed substantially to these impressive figures.
While miners relished their accruing profits, exchange-traded funds (ETFs) ramped up their Bitcoin holdings, acquiring around 66,000 bitcoins in March, surpassing the 25,500 bitcoins produced by miners during the same period. This widening gap between supply and demand, along with the imminent halving event, might escalate the competition for securing Bitcoin, potentially resulting in a contraction of the industry as less efficient miners may be phased out.
With the looming halving event, miners are bracing for a challenging landscape where their rewards will be slashed in half, underscoring the necessity for Bitcoin’s price surge to offset the reduced issuance.