Bitcoin Mining Revenue Hits 11-Month Low in August, Marathon Digital (NASDAQ:MARA) Shares Drop by Over 13%
Bitcoin mining revenues hit an 11-month low amid the aftermath of April’s halving event and the cryptocurrency’s downward price trend.
Data from BitBo revealed that miner earnings dropped to slightly over $827 million in August, a 10% decrease from July. This figure represented the lowest revenue since September 2023 and marked a significant 57% decline from the peak in March. The total number of mined Bitcoins also saw a 6% decrease, dropping from 14,725 in July to 13,843 in August.
The decline in revenues can be attributed to Bitcoin’s sharp 8.6% price drop in August. As miners generate income by selling their Bitcoin holdings, the price decrease had a direct impact on their revenue streams. Additionally, the hash price, which indicates a miner’s expected earnings per unit of hash rate, declined in August according to Hashrate Index, making mining less profitable.
The industry has faced challenges since the halving earlier this year, which cut block rewards in half, a significant component of miners’ revenue.
As of the latest data, Bitcoin was trading at $59,222.40, showing a 2.74% increase in the past 24 hours, based on information from Benzinga Pro. Mining-related stocks also experienced a downturn in August, with Marathon Digital Holdings Inc. (MARA), the largest by market capitalization, recording a 13.6% decline.
The cryptocurrency market continues to navigate through fluctuations in mining revenues and prices, with miners adapting to the evolving landscape to maintain profitability.
