2021 has been a momentous year in the cryptocurrency market, particularly for Bitcoin [BTC] miners whose revenues turned lucrative. The flagship asset has witnessed two major bull runs this year. After September losses, it has renewed its uptrend. And that has reflected in miners’ earnings.
Despite the halving event that occurs every four years, BTC miners’ daily revenue surged by an impressive 550% from $9 million back in 2020 to an all-time high [ATH] of $61 million per day this quarter.
As observed by the on-chain analytics platform, Glassnode, BTC miners’ earnings currently hover anywhere between $60- $62 million, with an average of 900 to 1000 blocks being newly created on a daily basis. Commenting on the same, Glassnode stated,
Bitcoin miners see BTC income halve every four years. In the current epoch, miners avg between 900 and 1,000 BTC per day. Despite this reduction in BTC denominated income, miner revenue in USD is up 550% since 2020 halving and approaching an ATH of $62M+ per day.
Bitcoin [BTC] hash rate
The latest income spike comes at a time when Bitcoin price rose up to a new top of $65,501, in the wee hours of the 8th of November, rapidly heading towards a new high since last month’s ATH. Meanwhile, the BTC network’s hash rate, a key measure of mining activity, was down to164 exahashes per second (EH/s) on 7 November, compared to 165.81 exahashes per sec the day before, as per the latest stats provided by YCharts.
In general, plugged-in miners’ profit margin have elevated against declining network hash rates in the backdrop of a rallying price. In a research note, Senior Analyst, Lucas Pipes of B Riley Financials observed that since the beginning of this month, BTC’s price movement has seen a steady increase of about 25%, and with the corresponding declining hash rate to about 18% over the past seven days, ‘bitcoin economics remain near highs.’
Earlier this week, two major crypto mining firms – Marathon Digital Holdings, and Hut 8 Mining corp have surpassed other crypto-linked stocks such as Bitfarms and Argo Blockchain, as economics for the miners continued to draw in profits. Bitcoin miners’ shares have the highest correlation to the asset’s price.