A recent surge in Bitcoin prices has led to unprecedented earnings for Bitcoin miners. Reports from on-chain analytics have shown that miners’ daily income has soared to new heights, unseen since April of the previous year. Miners benefit financially from the creation of new coins and transaction verification fees on the cryptocurrency‘s blockchain. This revenue boost has occurred alongside Bitcoin’s impressive price rally this year, with the digital currency hitting near-record values.
Surge in Miners’ Daily Income
CryptoQuant data has revealed that Bitcoin miners’ daily revenue spiked to $78.6 million on a single day in early March, marking a notable increase from the highs achieved during the previous bull run. The rising profitability aligns with the cryptocurrency’s price, which saw a nearly 70% increase year-to-date, trading around $72,668 following a peak at nearly $72,881.
Energy Consumption and Miner Holdings
As revenues ascend, Bitcoin mining‘s energy demands have also hit new records, with last month’s consumption reaching an unprecedented 19.6 gigawatts. This demand reflects over a 61% increase from the same period last year, highlighting the escalated mining activity amid a supply crunch that supports the cryptocurrency’s price growth.
Concurrently, Bitcoin mining entities have seen a noticeable depletion in their reserves, shedding around 14,128 BTC since the year’s start, which equates to a reduction of approximately $1 billion. Despite regular outflows, miners yet retain a substantial reserve of 1.82 million BTC, valued at an all-time high of $131 billion in U.S. dollars.
The Bitcoin mining sector’s trends exhibit a sharp contrast with institutional behaviors, particularly ETFs, which are currently offloading Bitcoin assets. The shift could signal a recovery from the prior harsh crypto winter that pushed some operators towards insolvency.