Bitcoin mining profitability has been severely impacted, with revenue falling to a one-year low in August. BTC Miners sold 2,655 BTC on the weekend.
In August, Bitcoin miners reported their lowest monthly revenue in a year, with earnings falling by a significant 57% from the 2024 peak.
This decline raises concerns about whether BTC miner capitulation has truly ended or if the market might be gearing up for another substantial sell-off.
Bitcoin Miner Revenue Decline Raises Concerns
During August, Bitcoin miners recorded a revenue of $827.56 million, which is a 10.5% decrease from July’s revenue of $927.35 million.
However, data from Bitbo indicates that this figure was still up by 5% compared to August 2023.
By the end of August, Bitcoin mining revenue had fallen dramatically, down 57% from the peak of $1.93 billion in March 2024, just before the Bitcoin halving event.
Additionally, in March, Bitcoin’s price hit an all-time high of $73,500.
The last time Bitcoin mining revenue was this low was in September 2023, when miners earned $727.79 million.
In August, the total number of Bitcoins mined also decreased to 13,843 BTC, down from 14,725 BTC mined in July.
The Bitcoin halving event significantly increased mining difficulty, reducing miner rewards by 50% to 3.125 BTC.
Combined with a decline in BTC transaction volumes, this has created a challenging environment for miners.
Moreover, the mining difficulty continued to rise, reaching a record high of 89.47 trillion in August. This led to a significant drop in profitability for miners.
Over the last weekend, Bitcoin miners sold a total of 2,655 BTC, worth an impressive $154 million.
As a result of these challenges, Bitcoin miners are looking for alternative revenue streams, such as offering computational power to the artificial intelligence (AI) industry.
Leading mining companies like Marathon Digital are adopting strategies similar to MicroStrategy’s, involving a $250 million convertible note offering to purchase BTC from the open market.
Meanwhile, firms like Vortex Brands are buying MicroStrategy shares as an indirect investment in BTC.
Possible BTC Miner Sell-off Ahead?
Following the halving event, Bitcoin miners were net sellers during the second quarter to cover operational costs.
Now, as they continue to face pressure from declining revenues, another wave of BTC miner selling could occur to generate additional cash.
Historically, September has been a bearish month for Bitcoin, which could lead to another price drop if combined with a miner sell-off.
The BTC price continues to face downward pressure and is currently trading below its key support level of $58,450, potentially paving the way for a further price decline to $50,000.
